Tuesday, October 12, 2021

Higher dividends await AREIT shareholders as SEC OKs ALI’s P15.5B asset infusion

The Securities and Exchange has approved the P15.46 billion share-for-asset between AREIT Inc. and its sponsor Ayala Land Inc. (ALI).

In a regulatory filing, AREIT said the subscription by ALI and its subsidiaries Westview Commercial Ventures Cop. and Glensworth Development to 483.25 million shares of AREIT in exchange for certain properties had been cleared by the SEC.

Among these properties include Vertis North with leasable area of 125,507.39 square meters, Evotech Buildings 1 and 2 ( 23,723 sqm of leasable office space), Bacolod Capitol Corporate Center (11,313 sqm), Ayala Northpoint Technohub (4,653.5 sqm), and office condominium units at BPI-Philam Life Buildings in Makati and Alabang (1,623 sqm).

Following the completion of the transaction, ALI’s ownership in AREIT will go up from 50.1 percent to 66 percent. AREIT’s gross leasable area will be 549,000 sqm and its total market capitalization will jump more than two-fold to P60 billion from P27 billion during its initial public offering last year.

“The infusion of the commercial assets is part of ALI’s commitment as AREIT’s sponsor to support AREIT’s growth plans of building a larger and more diversified portfolio,” said the property giant.

AREIT said the assets are expected to contribute significantly to earnings in succeeding periods, thereby increasing the potential dividend per share for it’d shareholders.

The recognition of income from the new assets will accrue to AREIT beginning Oct. 1 instead of Nov. 1.

Last September, AREIT declared third quarter dividends amounting to 44 centavos per share to stockholders of record as of Oct. 6.

SOURCE: Bilyonaryo

 

 

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