AREIT, Inc. has secured the green light from the Securities and Exchange Commission (SEC) for the property-for-share swap with Ayala Land, Inc., Ayalaland Malls, Inc., and Northbeacon Commercial Corp.
In a regulatory filing on Thursday, AREIT said the SEC approved the move involving the subscription of the three companies to 607.56-million AREIT shares in exchange for four office buildings and two regional flagship malls.
The properties, located in Ayala Commercial Center in Makati City and Angeles City, have a total value of P22.48 billion. Some of these are the Glorietta 1 and 2 business process outsourcing (BPO) buildings, the Glorietta 1 and 2 mall, and Marquee mall.
“The new assets are expected to contribute to earnings of the company beginning in the third quarter of 2023,” AREIT said.
AREIT said that it would apply for the certificate authorizing registration with the Bureau of Internal Revenue for the new assets and the listing of the shares within the first quarter of next year.
“Upon approval, AREIT’s outstanding common shares will increase to 2,368,606,573 from 1,761,047,193 wherein Ayala Land will own approximately 66% of the total shares while adhering to the prescribed minimum public ownership requirements under Philippine laws,” the company said.
Following the completion of the transaction, AREIT’s gross leasable area will increase over five-fold to 863,000 square meters, or about P87 billion in assets under management in 2023.
In a separate disclosure, AREIT said the SEC also approved on Sept. 20 the increase in its authorized capital stock to P40.5 billion divided into 4.05 billion common shares with a par value of P10 per share.
Before the amendment, AREIT’s authorized capital stock was P29.50 billion divided into 2.95 billion common shares at P10 apiece.
“The increase in authorized capital stock would enable AREIT to grow its assets under management through asset infusions and other allowable investments under the REIT Law,” the company said.
In the first half, AREIT logged a 25.2% increase in net income to P2.04 billion from P1.63 last year due to stable operations.
On Thursday, shares of AREIT at the local bourse closed unchanged at P32.30 apiece. — Revin Mikhael D. Ochave