Ayala Land, Inc.’s (ALI) subsidiary, AREIT, Inc., filed an application for a Real Estate Investment Trust (REIT) offering to the Securities and Exchange Commission (SEC) early this year. SEC may soon approve the application of Ayala Land REIT to launch a P15-billion offering.
In a phone call with BusinessWorld on Tuesday, SEC Commissioner Ephyro Luis B. Amatong said the regulator is targeting to greenlight ALI’s registration statement “very soon,” adding it may be within the third quarter.
“We hope to finish the process for the ALI REIT soon,” he said. “Target is very soon.” Aside from ALI, Mr. Amatong said there are other property companies who are also looking to launch their REITs, but none have submitted a registration statement yer.
ALI submitted its registration statement for a REIT offering to the SEC in February. The company’s plan is to do a primary offer of up to 47.86 million shares and a secondary offer of up to 430.78 million shares, with an over-allotment option of up to 23.93 million shares, each priced at P30.05, which would raise up to P15.1 billion in net proceeds.
The plan involves three office buildings of ALI in Makati City: the 24-story Solaris One, the mixed-use development Ayala North Exchange, and the five-story McKinley Exchange.
Ayala Land REIT plans to push through despite the coronavirus pandemic but noted the timing of the offering will depend on market conditions. The company did not provide an updated timetable on Tuesday.
DoubleDragon Properties Corp. had previously announced a plan to do an P11-billion REIT offering in the fourth quarter involving 200,000 square meters of leasing assets.
The prospectus indicated that the proceeds from its REIT offering will be allotted to future investments, such as buying Teleperformance Cebu from its subsidiary ALO Prime Realty Corp., and other real estate properties in Metro Manila and key regions.
“We have seen in past crises how the property sector has constantly been able to recover after a downturn with values appreciating over time. Given our country’s stable economy, it remains one of the best options for investment today,” Ayala Land Estates, Inc. Assistant Vice-President Cris Zuluaga said.
Earnings of ALI in the first quarter dropped 41% to P4.3 billion due to lower bookings and project completions because of the Taal Volcano eruption and the coronavirus pandemic.
Ayala Land, Inc. is listed in the Philippine Stock Exchange as $ALI and as of July 7, 2020, 03:30:00 PM, it was last traded at P34.70 -1.14% lower than its previous close with P137.18M value traded.
-Stockbytes PH, July 8 2020
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