AYALA-LED real estate investment trust company AREIT, Inc. has signed the deed of exchange for a P22.48-billion property-for-share swap with Ayala Land, Inc., Ayalaland Malls, Inc., and Northbeacon Commercial Corp.

In a regulatory filing on Monday, AREIT said 607.56-million primary common shares will be issued to the companies at P37 apiece in exchange for flagship offices and malls.

It said the price per share represents a 3% premium over the 30-day volume-weighted average price of AREIT. The shares will be issued out of the increase in its authorized capital stock, which will amount to P40.5 billion.

“Ayala Land, Ayalaland Malls, and Northbeacon will transfer, cede, and assign the properties to AREIT, while the latter grants the corresponding shares to the parties upon the [Securities and Exchange Commission’s] approval of the property-for-share swap,” the company said.

It added that AREIT had submitted an application to the commission for the increase in its authorized capital stock, a request for confirmation of exemption from the registration of securities, and the confirmation of valuation of the involved properties.

“Once approved, the parties shall apply for the certificate authorizing registration with the Bureau of Internal Revenue and the listing of the additional shares with the Philippine Stock Exchange within the first quarter of 2024,” it added.

Three office buildings will be added to AREIT’s portfolio, which are Glorietta 1 and 2 business process outsourcing (BPO) buildings, which have a gross leasable area (GLA) of 60,632.84 square meters (sq.m.), One Ayala West and East Tower, which has a GLA of 117,365.2 sq.m.

Additionally, two regional malls will be infused, which are Glorietta 1 and 2 Mall at Ayala Center, Makati City with a GLA of 68,763.84 sq.m., and Marquee Mall in Pampanga with a GLA of 66,041.04 sq.m.

AREIT said that since its initial public offering, it has exceeded its growth plans, resulting in a 52% total shareholder return based on the closing price of P35.85 on March 6, 2023. It started with assets under management (AUM) of 153,000 sq.m. equivalent to P30 billion.

To date, AREIT has recorded 673,000 sq.m. equivalent to P64 billion in AUM.

The new infusion of properties will nearly triple its AUM to P87 billion and boost its GLA more than five times to 863,000 sq.m., “making AREIT one of the largest and the most diversified commercial REIT in the Philippines.”

On Monday, its shares rose by 1.64% or P0.55 to P34.05 apiece. — Adrian H. Halili