AREIT Inc. continues to bolster its portfolio with the acquisition of 276 hectares of industrial land located in Zambales from Buendia Christiana Holdings Corp., a wholly owned subsidiary of ACEN Corp.
The transaction will be a property-for-share swap with AREIT issuing BCHC 199,109,438 AREIT primary common shares in exchange for the land valued at P6.77 billion, as validated by a third-party fairness opinion. Upon issuance of AREIT shares in exchange for the land, Giga Ace 8 Inc., a wholly owned subsidiary of ACEN engaged in the business of developing and operating a solar plant, will lease the land from AREIT for 25 years at a guaranteed fixed rent escalating every year, and with the option to renew for another 25 years.
This acquisition solidifies AREIT’s footing as the Philippines’ largest and most diversified Real Estate Investment Trust, now at 861,000 square meters of building gross leasable area.
After the acquisition, AREIT will own 286 hectares of industrial land, which includes 9.8 hectares currently owned in Laguna Technopark.
This will increase AREIT’s assets under management from P87 billion to P94 billion.