PROPERTY developer Ayala Land, Inc. (ALI) said it has raised P3.18 billion from a block sale of AREIT, Inc. shares as part of a property-for-share swap deal.
ALI and its wholly owned subsidiary Westview Commercial Ventures Corp. sold an aggregate of 98 million common shares of AREIT at P32.45 apiece to institutional investors, the listed property developer said in a stock exchange disclosure on Tuesday.
“The transaction is 2x oversubscribed at the clearing price and was anchored by high-quality long-only institutional investors. The placement is in relation to ALI’s property-for-share swap transaction with AREIT,” ALI said.
AREIT is the real estate investment trust of ALI. The deal was done pursuant to a placement agreement with BPI Capital Corp. and UBS AG Singapore branch.
“The proceeds from the block sale shall be settled on May 23, subject to the terms and conditions of the placement agreement. ALI and its subsidiary will submit the required reinvestment plan detailing the use of proceeds obtained from the block sale in due course,” ALI said.
In June 2021, ALI announced that it had executed the deed of exchange for the property-for-share swap transaction with AREIT, Inc.
The deal includes the issuance of ALI and its subsidiaries, Westview Commercial Ventures and Glensworth Development, Inc., 483,254,375 primary common shares of AREIT at P32 apiece in exchange for ALI’s properties valued at P15.46 billion altogether.
The properties involved in the transaction include Vertis North Commercial Development, Evotech Buildings 1 and 2, Bacolod Capitol Corporate Center, Ayala Northpoint Technohub, and office condominium units at BPI-Philam Life Buildings in Makati and Alabang.
On Tuesday, ALI shares fell by 2.36% or 70 centavos to P29 per share. — Revin Mikhael D. Ochave
