AREIT, Inc., the Ayala Group’s Real Estate Investment Trust (REIT), said it will use 10% of its initial public offering (IPO) proceeds to acquire Teleperformance Cebu at the Cebu IT Park.
Teleperformance Cebu will be its fourth commercial leasing asset, AREIT said in a statement on July 14, 2020.
The bulk of its IPO proceeds, or 90%, will be used by parent firm Ayala Land, Inc. to reinvest into its real estate projects.
AREIT said the Securities and Exchange Commission (SEC) approved on July 10 its REIT offering of up to P15 billion.
The base offer is up to 456.883 million common shares at an offer price of up to ₱30.05 per share, with a stabilization option of up to 45,688,700 common shares. The total represents up to 49% of AREIT’s capital stock.
A REIT is a company that buys and operates real estate assets such as office buildings, shopping malls, apartments, hotels and resorts.
Other assets in AREIT’s portfolio are Solaris One, Ayala North Exchange, McKinley Exchange Corporate Center.
“All properties are occupied by diverse high-quality tenants consisting of large business process outsourcing companies, top multinationals and local headquarter offices, together with amenity retail, food, and essential stores,” the company said.
Solaris One is located along Dela Rosa St. in Makati City and is one of the pioneer BPO buildings in the country.
Ayala North Exchange, situated at the northern end of Ayala Avenue, is a mixed-use commercial development, completed in 2019, with two office towers, a retail podium, and Seda Residences Makati, a serviced apartment covered by a long-term lease with a subsidiary of ALI.
The third building, which AREIT leases from ALI, is McKinley Exchange Corporate Center located at the corner of EDSA and McKinley Road.
Together with the acquisition of Teleperformance Cebu after its listing, AREIT will have a total gross leasable area of over 170,000 square meters.
Related story: First REIT offering comes from Ayala Land
After securing the SEC pre-effective approval, AREIT will seek approval from the Philippine Stock Exchange of its listing application, and its Order of Registration and Permit to Sell from the SEC. (Ventures Cebu)