AREIT, Inc. (AREIT) is set to further expand its portfolio through its sixth property-for-share swap with its Sponsor, Ayala Land, Inc. (ALI).
The transaction involves the acquisition of two prime commercial mall properties located in Metro Manila and Cebu, valued at an aggregate of P19.5 billion.
The AREIT Board of Directors has approved the property-for-share swap transaction with ALI and its wholly-owned subsidiary, Summerhill Commercial Ventures Corp. (Summerhill).
As part of the deal, ALI and Summerhill will subscribe to 441,131,656 primary common shares of AREIT in exchange for Ayala Center Cebu, a flagship mall in Cebu Business Park, Cebu City, and Ayala Malls Feliz, located along Amang Rodriguez Avenue in Pasig City.
The shares will be priced at P44.15 per share, as validated by a third-party fairness opinion.
This transaction will increase AREIT’s Assets Under Management (AUM) to P158 billion, with the two properties contributing a combined building gross leasable area (GLA) of 375,000 square meters (sqm).
AREIT’s total GLA will grow to 4.7 million sqm, comprising 1.8 million sqm of building GLA and 2.9 million sqm of industrial land GLA.
Post-transaction, the composition of AREIT’s 1.8 million sqm building GLA will shift to include 40% offices, 54% retail, and 6% hotels, enhancing its retail exposure and expanding its footprint across Metro Manila and Cebu.
The transaction is subject to approval by AREIT shareholders at a Special Stockholders’ Meeting on December 11, 2025, as well as pertinent regulatory bodies.
ALI and AREIT aim to complete the transaction by the second half of 2026.
Once approved, total asset infusions for 2025 will reach P40.5 billion, marking AREIT’s largest annual addition to date.
This latest infusion is expected to support dividend growth and be yield-accretive, consistent with prior transactions.
“This latest infusion strengthens AREIT’s portfolio with two dynamic retail destinations, enhancing both our geographic reach and asset mix.
As we continue to build scale with quality, our shareholders will benefit from a larger and more diversified portfolio,” said AREIT President and CEO, Mr. Alberto M. de Larrazabal.
This transaction underscores AREIT’s commitment to delivering value to its shareholders through strategic acquisitions and portfolio diversification.
