AREIT Inc. will embark on its largest acquisition next year with P23 billion worth of prime commercial properties from its sponsor Ayala Land Inc. (ALI) alongside the purchase of the P6.77 billion industrial land from Buendia Christiana Holdings Corp. (BCHC), a wholly owned subsidiary of ACEN Corp. (Acen).
During its meeting on Thursday, Nov. 29, 2023, ALI’s board of directors approved its planned 2024 asset infusions into Areit comprising Makati flagship assets, Ayala Triangle Gardens Tower 2, Greenbelt 3 and 5, and Holiday Inn and Suites Makati at Ayala Center, as well as Seda Ayala Center Cebu.
ALI and its subsidiaries Greenhaven Property Ventures Inc. and Cebu Insular Hotel Co. Inc. will subscribe to 642,149,974 Areit primary common shares in exchange for the Makati and Cebu properties valued at P21.8 billion at an exchange price of P34 per share, as validated by a third-party fairness opinion.
The transaction will be subject to the approval of Areit shareholders in their special stockholders meeting in February 2024 and pertinent regulatory bodies thereafter.
In addition to the asset-share swap, Areit will acquire Seda Lio in El Nido, Palawan, from ALI subsidiary Econorth Resort Ventures Inc. for P1.19 billion.
The acquisition is expected to immediately contribute to Areit’s income within the first quarter of 2024.