Property developer Ayala Land Inc. announced last Wednesday that it sold 205 million shares of Areit Inc. at a transaction price of P32.10 per share, equivalent to P6.58 billion.
The said transaction was in relation to its P22.5 billion property-for-share swap transaction with Areit, the real estate investment trust sponsored by the property developer.
“The said shares were also offered and sold in the Philippines in transactions that do not require registration under the Philippine Securities Regulation Code,” the company said.
“Any future offer or sale of the offer shares by the buyers thereof in the Philippines is subject to the registration requirements of the SRC unless such offer or sale qualifies as an exempt transaction in accordance with the applicable requirements of the SRC,” it said.
The proceeds from the block sale shall be settled on April 3.
Areit is conducting a third property-for-share swap with its sponsor, involving prime property in Makati including a portion of its shopping mall.
The transaction, the company said in its previous disclosure, will involve flagship offices and malls with an aggregate value of P22.48 billion for 607.55 million Areit primary common shares, as validated by a third-party fairness opinion.
The assets are mainly located in the Makati central business district, specifically, the newest “One Ayala Avenue East” and “West BPO Towers” at the corner of Ayala Avenue and EDSA, as well as the “Glorietta 1” and “Glorietta 2” shopping mall wing and business process outsourcing (BPO) buildings at Ayala Center.
Aside from these, the “MarQuee” mall in Angeles, Pampanga, located close to the Angeles exit of the North Luzon Expressway, would also be added to Areit’s portfolio.
These assets have a combined gross leasable area of 190,000 square meters, an overall occupancy rate of 99 percent and a weighted average lease expiry of 14.5 years.
The shares of Ayala Land closed at P28.90, up by 45 centavos from the previous close, while Areit shares closed at P32.30, down by P2 from the previous close.