December 11, 2024 | 12:00am
MANILA, Philippines — Property giant Ayala Land Inc. (ALI) has raised P2.8 billion from another round of block sale of AREIT Inc. shares.
In a stock exchange filing, ALI said it sold 75 million common shares of AREIT at P37 apiece pursuant to a placement agreement with BPI Capital Corp. and UBS AG Singapore Branch.
ALI said the transaction was multiple times oversubscribed.
It was upsized on the back of strong participation from local long only and international investors.
The company said proceeds from the block sale would be settled on Dec. 12, subject to the terms and conditions of the placement agreement.
ALI said it would submit in due course the required reinvestment plan detailing the use of proceeds obtained from the block sale.
The company in September raised P2.72 billion after selling 75 million common shares of AREIT at P36.2 apiece under a placement agreement.
Last May, ALI announced that it has sold more shares of AREIT in line with the company’s property-for-share swap transaction with the listed real estate investment trust.
Together with its wholly owned subsidiary Westview Commercial Ventures Corp., ALI then sold a total of 98 million common shares of AREIT at P32.45 apiece, equivalent to a total of P3.18 billion.
The company also sold P5.6 billion worth of AREIT shares at the start of the year.
ALI is the sponsor of AREIT, the listed real estate investment trust of the Ayala Group.
AREIT is looking to ramp up its asset diversification to accelerate its growth in the coming years.
The company intends to diversify its asset mix with a portfolio of offices, malls, hotels and industrial assets to improve returns and reduce sector risks across various economic cycles.
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