AYALA Land, Inc. (ALI) and its real estate investment trust AREIT, Inc. have finalized the deed of exchange for the property-for-share swap deal, both listed companies said on Wednesday.
Ayala Land and its subsidiaries, Westview Commercial Ventures Corp. and Glensworth Development, Inc., would receive 483,254,375 main common shares of AREIT at P32 per share in return for Ayala Land’s assets worth P15.46 billion in total.
The shares will be drawn from AREIT’s approved capital stock, which the company hopes to increase from P11.74 billion to P29.5 billion pending clearance from the Securities and Exchange Commission (SEC).
“Following the execution of the deed of exchange, the involved parties will submit to the SEC within a month the application for the increase in authorized capital stock, and the property-for-share swap, specifically the request for confirmation of valuation and exemption from registration,” Ayala Land and AREIT stated in their disclosures.
Following regulatory clearance, both businesses will file for a certificate permitting registration with the Bureau of Internal Revenue and the listing of the extra shares on the Philippine Stock Exchange this year.
“The commercial asset injection is part of ALI’s commitment as AREIT’s sponsor to support AREIT’s growth ambitions of establishing a bigger and more diverse portfolio,” Ayala Land said.
Vertis North Commercial Development, Evotech Buildings 1 and 2, Bacolod Capitol Corporate Center, Ayala Northpoint Technohub, and office condominium apartments at BPI-Philam Life Buildings in Makati and Alabang are among the assets included in the property-for-share exchange.
This would boost AREIT’s portfolio to 549,000 square meters (sq.m.) from 344,000 sq.m., as well as its deposited property worth to P52 billion from P37 billion.
Meanwhile, the purchase increases Ayala Land’s stake in AREIT from 50.1 percent to 66 percent.