PROPERTY developer Ayala Land Inc. (ALI) plans to fund three developments in Metro Manila, including construction of the new Mandarin Oriental Hotel, with the P2.7 billion raised from the block sale of 75 million common shares of real estate investment trust AREIT Inc.
In its reinvestment plan filed with the stock exchange on Tuesday, ALI said it “intends to invest its net proceeds in residential and commercial developments comprising one office building, one residential development, and one hotel building in Metro Manila which Ayala Land may undertake on its own or through other subsidiaries and affiliates.”
The AREIT shares, priced at P36.20, were sold in a block sale through a placement agreement with UBS AG Singapore branch and BPI Capital Corp. The placement was settled on Tuesday.
“The sale was made in anticipation of potential infusions that Ayala Land Inc. may make, in line with its commitment to grow AREIT’s portfolio in accordance to AREIT’s three-year growth plan,” ALI said.
The firm will spend P1.04 billion for the development of a 45-story office building that will house the headquarters of sister firm Bank of the Philippine Island. The BPI HQ redevelopment, said to be at 26 percent, is expected to be finished by 2029.
A five-block residential development that is currently 90-percent complete, Arbor Lanes, will receive P477.96 million. It is scheduled for completion next year.
The Mandarin Oriental, ALI’s 276-room hotel development, will receive P1.18 billion. Construction was said to be already 57 percent complete and the hotel is set to be finished by 2026.
The funds from the AREIT share sale will be disbursed over this quarter and the first half of 2025.
“The transfer of funding from Ayala Land to the relevant Ayala Land subsidiary or affiliate may be through a capital infusion or through shareholder financing,” ALI also said.
ALI shares rose P1.10, or 2.96 percent, to P38.30 apiece on Tuesday while AREIT shares dropped 5 centavos, or 0.13 percent, to P37.00 each amid a 0.20-percent advance for the benchmark Philippine Stock Exchange index.
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