In the P15 trillions property swap contract, the real estate investment trust of AYALA LAND, Inc., AREIT Inc. has listed ten assets.
In its announcement on Wednesday, the deal included a total of 250,000 sq. m. of leasable space, including Vertis north company, 1 and 2 Evotech buildings in Nuvali Santa Rosa, Laguna (Bacolod Capitol), and Ayala North Point Technohub, BPI-Philam Life buildings in Makati Central Business District (MBD), Madrigal B. AREIT announced that there were 300 000 square meters of leasable space in its exchange.
“This transaction shows the priority of a well-designed REIT to produce impressive returns for its shareholders. It simultaneously helps AREIT to dramatically raise its assets and the shareholder value,” said Carol T. Mills, President and CEO of AREIT, in a statement.
Quezon City, Vertis North is the largest property. Business growth covers a surface area of 125,000 sqm and a shopping podium of 39,000 sqm.
Ayala Land subsidiary operates the construction retail portion under the name Ayala Malls.
The company stated that, “[the] would compensate AREIT for a term of 36 years with a monthly fixed building lease to ensure AREIT steady revenue.
The three office buildings of Vertis North are occupied by 97 percent. These spaces are actually rented for the outsourcing of major market processes, like the Philippines, Inc., Telus Corp., and Global Payments, Inc., corporations Google Services.
The assets of Nuvali Evotech give a leasable surface area of 23000 sq.m. Concentrix CVG and IBM Business Services are now in control.
The leasing area presently used by ARB Call facilities is 11,000 sq.m. in the Bacolod Capitol Corporate Center in the West of Negros. The 5,000 m2 in the meantime. iQor is housed by Ayala North Point Technohub.
“In addition, OberthurCard Systems has been occupied, leased to 100% and run by the Oberthur Card Systems office in Makati and in Alabang Ayala Land subsidiary, Alabang,” AREIT said. “They have a total of 1,500 sq.m. of Oberthur Card Systems in Makati as well as Amaia Land.
Proprietors and legislative bodies also have the consent of the property-for-share contract with the Ayala Land.
The board of directors of AREIT also approved an increase from P11,74 trillion on Tuesday of the capital stock allowed by AREIT to P29,5 trillion.
The Board has also authorized 483.25 million of the primary common stocks of AREIT at P32 per share for Ayala Land’s subscription to the Ayala Land trading trend worth P15.46 billion.
Out of 1,02 billion shares, the deal would blow AREIT’s outstanding common shares to 1,51 billion. Any 66 percent of the overall shares would be owned by Ayala Property.
The property value invested by AREIT would also increase from P37 billion to P52 billion. The lease portfolio of the group is to rise from 344,000 m2 to 549,000 m2.
“The assets are supposed to further add to their operational cash flow and increase dividends per share,” said AREIT.