The Securities and Exchange Commission approved the P15-billion bond shelf registration program of AREIT Inc., a real estate investment trust owned by Ayala Land Inc.
The SEC said the bonds may be issued in one or more tranches within a period of three years. For the first tranche, AREIT will raise up to P3 billion worth of fixed-rate bonds due 2023.
It said the net proceeds from the offering would be used to refinance debt and partially finance the acquisition of The 30th, a mixed-use commercial development in Pasig City. The 30th is a commercial building with gross leasable area of 74,704 square meters composed of a 19-story office tower with a GLA of 47,871 sq. m. and a 4-story retail podium with GLA of 26,833 sq. m.
The acquisition of The 30th is part of AREIT’s strategy to expand its leasing portfolio to boost shareholder value.