Ayala Land, Inc. (ALI) subsidiary AREIT, Inc. became the first company to file its application for a Real Estate Investment Trust (REIT) offering before the Securities and Exchange Commission (SEC).
In a regulatory filing before the Philippine Stock Exchange (PSE), Ayala Land said AREIT is seeking to raise up to P15 billion from the issuance of 478,639,700 shares at P30.05 per share.
The developer said this offering reflects its confidence in the local economy.
“Through this initial capital market transaction, ALI hopes to pave the way for the development of a REIT market in the country, bringing another milestone to the Philippine stock market,” the company said.
The REIT is a new asset class that provides investors with dividend-based income, inflation protection, and portfolio diversification. It broadens investment options for Filipinos, opening the opportunity to own a stake in high-value real estate assets in the country.
ALI seeded AREIT, Inc. with Grade A office assets located in the Makati Central Business District and is expected to expand its portfolio with new acquisitions in the future.
The developer said it will conduct an Initial Public Offering (IPO) of AREIT, Inc. after receiving the regulatory approvals from the SEC and the PSE.
AREIT’s application was filed following the release of the Revised Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9856, or the Real Estate Investment Trust Act of 2009, on January 20, 2020.
The REIT Act, approved by Congress in 2009, allows REIT companies to list and trade its shares of stock in the Philippine Stock Exchange (PSE) as an alternative means to raise funds for property development and expansion initiatives. (Ventures Cebu)