AREIT, Inc. has finalized the acquisition of Seda Lio resort hotel from Ayala Land, Inc. unit Econorth Resort Ventures, Inc. for P1.19 billion, the listed company announced on Wednesday.
In a stock exchange disclosure, AREIT said that Seda Lio is a 153-room resort hotel that caters primarily to leisure tourists, families, social and corporate events, and other visitors.
The company will earn a guaranteed building lease from the hotel’s operator, Econorth Resort Ventures, over the next 25 years starting this month.
AREIT President and Chief Executive Officer Carol T. Mills said the acquisition of Seda Lio puts the listed company’s assets under management at P117 billion from P87 billion.
“The acquisition of Seda Lio, alongside the planned asset infusions in 2024, will not only enlarge and expand AREIT’s footprint but also diversify its assets and reduce concentration risk,” Ms. Mills said.
According to AREIT, the acquisition is part of its growth plans for 2024, which includes the infusions from Ayala Land such as Ayala Triangle Gardens Tower 2, luxury mall Greenbelt wings 3 and 5, and Holiday Inn and Suites in Makati, and Seda Hotel at Ayala Center Cebu, worth P21.8 billion.
The infusions will be complemented by the acquisition of a 276-hectare industrial land in Zambales leased by Giga Ace 8, Inc. from Buendia Christiana Holdings Corp. (BCHC), which are both wholly owned subsidiaries of ACEN Corp, it added.
“Except for Seda Lio, the aforementioned assets will be acquired through a property-for-share swap with ALI and its subsidiaries, Greenhaven Property Ventures, Inc. and Cebu Insular Hotel Co., Inc., subscribing to 642,149,974, and BCHC to 199,109,438 AREIT primary common shares at an exchange price of P34 per share, as validated by a third-party fairness opinion,” AREIT said.
“The infusion will be for the approval of AREIT shareholders at their Special Stockholders Meeting on Feb. 12 and pertinent regulatory bodies thereafter,” it added.
On Wednesday, shares of AREIT fell by 15 centavos or 0.44% to P33.95 apiece while stocks of Ayala Land dropped by P1 or 3% to P32.30 each. — Revin Mikhael D. Ochave
