AREIT seals P19.5 billion ALI expansion

AREIT Inc., the country’s first publicly listed real estate investment trust, is expanding its commercial portfolio with the planned infusion of P19.5 billion worth of mall assets from Ayala Land, Inc. (ALI) and its subsidiary Summerhill Commercial Ventures Corp.

The company informed the local bourse on Wednesday that the transaction involves the acquisition of Ayala Center Cebu in Cebu Business Park and Ayala Malls Feliz in Pasig City.

The properties will be acquired through the issuance of 441,131,656 primary common shares to ALI and Summerhill at P44.15 per share, supported by a third-party fairness opinion.

“This latest infusion strengthens AREIT’s portfolio with two dynamic retail destinations, enhancing both our geographic reach and asset mix,” AREIT President and CEO Alberto M. de Larrazabal said.

“As we continue to build scale with quality, our shareholders will benefit from a larger and more diversified portfolio,” he added.

The infusion, AREIT’s sixth property-for-share swap and its largest asset addition this year, will raise its assets under management to P158 billion and add 375,000 square meters of building gross leasable area (GLA).

It will expand AREIT’s total portfolio to 4.7 million sqm, composed of 1.8 million sqm of building GLA and 2.9 million sqm of industrial land GLA.

After the transaction, retail assets will make up 54 percent of AREIT’s building portfolio, offices 40 percent, and hotels 6 percent, expanding its footprint in Metro Manila and Cebu.

The deal still requires approval from shareholders at a special stockholders’ meeting on 11 December, as well as regulatory clearances.

AREIT targets completion by the second half of 2026.

Once completed, total property infusions for the year will reach P40.5 billion, which AREIT said will support dividend growth and remain yield-accretive.