Ayala Land raised P2.78B in sales of its AREIT shares

Ayala  Land, Inc. (ALI) has raised P2.78 billion through the sale of 75 million shares in its real estate investment trust  unit, AREIT, Inc.

In a regulatory filing, ALI said the shares, priced at ?37 each, represent approximately 2.33 percent of AREIT’s total outstanding shares.

The offering was arranged by BPI Capital Corporation and UBS AG Singapore Branch, with demand from both local and international institutional investors pushing the deal beyond the initially planned 50 million shares.

The transaction, which was oversubscribed multiple times, saw the shares placed with qualified institutional buyers in the United States, as well as in private transactions within the Philippines, complying with exemptions under the Securities Regulation Code.

The proceeds from the sale will be settled on December 12, 2024, under the terms of the placement agreement. Ayala Land and AREIT are expected to submit a reinvestment plan detailing the allocation of the funds.

The share sale is essential to comply with the minimum public ownership requirements set by the REIT Law. 

ALI must raise AREIT’s free float before proceeding with an asset infusion, as the infusion is expected to lower the public float by increasing ALI’s ownership in the company.