Ayala Land-sponsored AREIT Inc. is the first real estate investment trust (REIT) to list to the local market. The Philippine Stock Exchange (PSE) has approved the initial public offering (IPO) of as much as P15.1 billion planned by Ayala-led company. AREIT will offer a total of 502.57 million shares, inclusive of the over-allotment option of around 45.69 million, at an indicative price of up to P30.05 per share.
PSE president and chief executive officer Ramon Monzon said in a statement on Saturday. “We are set to witness a milestone in the capital market with the first REIT IPO. We are excited over the prospects of the REIT sector now that we have a first-mover in REIT listing,”
The primary offering consists of 47.86 million new common shares while 409.02 million secondary shares will also be offered.
The final offer price will be determined on Tuesday July 22 after the company’s book building process.
AREIT’s offering will run from July 27 to August 3 while listing is slated for August 13.
“We are pleased that AREIT has decided to pursue its IPO even under the present economic challenges brought about by the (coronavirus) COVID-19 pandemic. We are optimistic that the company’s IPO will pave the way for other property firms, even those that are not yet listed in the PSE, to consider listing REITs,” Monzon added.
AREIT’s property portfolio consists of three office and commercial buildings, excluding the land on which they stand: Solaris One, Ayala North Exchange and McKinley Exchange.
REITs are essentially corporations that manage real estate assets that produce regular income such as hotels, apartment buildings, office and commercial buildings, and shopping malls. According to the SEC, besides providing real estate companies a cheaper source of capital and promoting economic development, growth in tourism and liquidity in the capital markets, REITs allow both retail and large investors to participate in the direct ownership of the real estate and is an alternative investment instrument to foreign investors as well as OFWs.
The PSE will upload a list of all confirmed REIT eligible brokers as reference for the investing public. All related REIT information may be found on https://pse.com.ph/REITS/REITS.htm.
Aside from Ayala Land Inc., DoubleDragon Properties Corp. also announced its plan to do a P16.97-billion REIT offering in the fourth quarter of the year.
-Stockbytes PH, July 20, 2020,
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