AREIT shareholders approve P17.3 billion property-for-shares deal with Ayala Land
AREIT shareholders have approved a P17.3 billion property-for-shares transaction with Ayala Land and its subsidiaries, involving four malls and two hotels. The deal will see ALI subscribe to 462.48 million new AREIT shares at P37.48 each, raising AREIT's assets under management to P177 billion. The
AREIT, Inc. shareholders have approved a P17.3-billion property-for-shares transaction with Ayala Land, Inc. (ALI) and its subsidiaries involving four malls and two hotels, subject to regulatory approval.
Under the transaction, ALI and its subsidiaries will subscribe to 462.48 million primary AREIT common shares at P37.48 apiece in exchange for the six properties, AREIT said in a statement on Thursday. The transaction would raise AREIT’s assets under management to P177 billion from P159 billion once completed.
The properties are Glorietta 4 and Ayala Malls Circuit in Makati City, Ayala Malls Capitol Central in Bacolod City, Ayala Malls Cloverleaf in Quezon City, New World Makati Hotel, and Seda Vertis North.
After the transaction, offices would account for 55% of AREIT’s portfolio, followed by retail properties at 33%, hotels at 8%, and land at 4%. Retail and hospitality assets combined would make up 41%.
AREIT said it would directly lease the four malls, while the two hotels would be covered by master lease agreements consisting of fixed rent and payments tied to hotel revenues. AREIT President and Chief Executive Officer Alberto M. de Larrazabal said the arrangements would give the company greater exposure to the operating performance of the properties.
Asian Appraisal conducted independent appraisals of the properties, while FTI Consulting issued a third-party fairness opinion on the transaction valuation and the share exchange price, according to AREIT. The transaction will be submitted to the Securities and Exchange Commission (SEC) for approval. AREIT said the properties would begin contributing income only after SEC approval, while the shares covered by the transaction would be issued to ALI and its subsidiaries following the approval.
AREIT posted P7.7 billion in revenue for the first half of 2026, up 30% from a year earlier. Earnings before interest, taxes, depreciation, and amortization rose 34% to P5.8 billion, while net income excluding fair-value changes in investment properties increased 36% to P5.8 billion. AREIT shares fell by 1.60% to P36.90 each on Thursday.
