AREIT, INC. is set to augment its assets under management (AUM) by adding P19.5 billion worth of commercial mall properties from its sponsor Ayala Land, Inc. (ALI) through its sixth property-for-share swap.
In a disclosure on Wednesday, AREIT said its board of directors had approved the property-for-share swap with ALI and its wholly owned subsidiary Summerhill Commercial Ventures Corp. The transaction will boost AREIT’s AUM to P158 billion and expand its total gross leasable area (GLA).
Under the share swap deal, ALI and Summerhill will subscribe to 441.13 million primary common shares of AREIT in exchange for Ayala Center Cebu in Cebu Business Park and Ayala Malls Feliz on Amang Rodriguez Avenue, Pasig City.
These two assets have a combined building GLA of 375,000 square meters (sq.m.), increasing AREIT’s total GLA to 4.7 million sq.m. This includes 1.8 million sq.m. of building GLA and 2.9 million sq.m. of industrial land GLA.
After the transaction, the 1.8 million sq.m. of building GLA will be composed of 40% offices, 54% retail, and 6% hotels — boosting AREIT’s retail holdings and expanding its presence in Metro Manila and Cebu.
“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,” AREIT President and Chief Executive Officer Alberto M. de Larrazabal said.
ALI and AREIT plan to complete the deal in the second half of 2026.
The transaction is subject to approval by AREIT shareholders and regulatory clearance. Once finalized, total infusions for the year will amount to P40.5 billion, marking the largest annual increase in AREIT’s history.
Similar to past transactions, the company said this infusion is expected to support dividend growth and improve yields.
At the local bourse on Wednesday, AREIT shares fell by 0.12% or 5 centavos to close at P43 apiece, while ALI shares declined by 2.66% or 55 centavos to P20.15 each. — Alexandria Grace C. Magno
