Property developer Ayala Land Inc. (ALI) is injecting P23 billion worth of prime office, mall and hotel properties to real estate unit AREIT Inc. via a property-for-share swap deal.
The asset infusion includes ALI’s Makati flagship assets Ayala Triangle Gardens Tower 2, a premium office tower at the corners of Paseo de Roxas and Makati Ave., luxury mall Greenbelt 3 and 5 and Holiday Inn and Suites Makati at Ayala Center and Seda Ayala Center Cebu.
These assets were valued at P21.8 billion as validated by a third-party fairness opinion.
The companies said that in exchange of these assets, ALI and its subsidiaries Greenhaven Property Ventures Inc. and Cebu Insular Hotel Co. Inc. will subscribe to 642.149 million AREIT primary common shares.
AREIT will also acquire Seda Lio in El Nido, Palawan from ALI subsidiary Econorth Resort Ventures Inc. for P1.19 billion. The acquisition is expected to immediately contribute to AREIT’s income within the first quarter of 2024.