This improved mix will enhance AREIT’s retail exposure and broadens its footprint across Metro Manila and Cebu.
In a statement last Wednesday, October 29, AREIT, Inc. (AREIT) disclosed to the Philippine Stock Exchange that it will be conducting its sixth property-for-share swap with its sponsor, Ayala Land, Inc. (ALI).
This activity involves the acquisition of two (2) commercial mall properties located in Metro Manila and Cebu, namely Ayala Malls Feliz in Pasig City and Ayala Center Cebu.
“The AREIT Board of Directors approved today a property-for-share swap transaction with ALI and its wholly-owned subsidiary, Summerhill Commercial Ventures Corp. (Summerhill), which involves the subscription of ALI and Summerhill to 441,131,656 primary common shares of AREIT,” noted AREIT.
“This latest infusion strengthens AREIT’s portfolio with two dynamic retail destinations, enhancing both our geographic reach and asset mix,” said AREIT President and CEO Alberto M. de Larrazabal.
He continued, “As we continue to build scale with quality, our shareholders will benefit from a larger and more diversified portfolio.”
The aggregate value of the two properties stands at PHP19.5 billion and will be exchanged for AREIT shares priced at PHP44.15 per share, as validated by a third-party fairness opinion.
“The planned infusions of ALI and Summerhill will bring AREIT’s Assets Under Management (AUM) to P158 billion,” added AREIT.
These assets, together, have a combined building gross leasable area (GLA) of 375,000 square meters (sqm) and will bring AREIT’s total GLA to 4.7 million sqm—comprising of 1.8 million sqm building GLA and 2.9 million sqm industrial land GLA.
Post-transaction, across the 1.8 million sqm of building GLA, offices will account for 40%, retail will increase to 54%, and hotels will comprise 6%.
The said transaction is still subject to the approval of AREIT shareholders at a Special Stockholders’ Meeting thar will be called on December 11, 2025, with the related regulatory bodies thereafter. ALI and AREIT are targeting to complete the
transaction by the second half of 2026.
When approved, total infusions for the year will reach P40.5 billion—making it AREIT’s largest annual addition to date and consistent with prior transactions, this latest infusion is expected to support dividend growth and be yield-accretive.