Philippine developer Ayala Land has agreed to a property-for-share swap, worth PHp21bn (€345m), with the listed Ayala Real Estate Investment Trust (AREIT).
The deal involves Ayala exchanging eight commercial assets, comprising four office buildings, three malls and a hotel, for 506m shares in AREIT.
AREIT will embark on its most significant acquisition this year with the additional PHp23bn worth of prime commercial properties from its sponsor Ayala Land alongside the purchase of the PHp6.77bn industrial land from Buendia Christiana Holdings Corporation, a subsidiary of ACEN Corporation.
AREIT said the planned “infusions” of the additional assets would increase its assets under management (AUM) to PHp138bn.
Jose Eduardo A Quimpo II, president and CEO of AREIT, said the acquisition is in line with the firm’s growth target of PHp15-20bn in AUM per year.
“This will further diversify the portfolio and deepen AREIT’s presence in the fast-growing regional cities in Visayas and Mindanao,” he added.
Currently, AREIT’s AUM as of the end of 2024 was PHp117.3bn. The portfolio has grown from just PHp30m when it held its first public offering in 2020.
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