Ayala Land sets REIT offer price at P27 each

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AYALA LAND, INC. (ALI) has finalized the offer price for its maiden real estate investment trust (REIT) offering at P27 per share.

BPI Capital Corp., the sole global coordinator and stabilizing agent for the offering, told the Philippine Stock Exchange, Inc. (PSE) on Wednesday that ALI will be offering REIT shares at P27 each.

ALI is doing its REIT offering through AREIT, Inc., which will be selling 456.88 million shares with an overallotment option of 45.69 million shares.

The final offer price is lower than the initial P30.05 per share that the company indicated in the prospectus it submitted to the PSE and the Securities and Exchange Commission.

Based on the final price, ALI could raise up to P13.57 billion from the REIT offering, assuming the full utilization of its overallotment option.


When the PSE approved ALI’s REIT application last week, it said the company’s offer period will be from July 27 to Aug. 3, with listing at the PSE main board tentatively scheduled on Aug. 13.

AREIT’s portfolio currently consists of three office buildings in Makati City: 24-storey commercial building Solaris One, two-tower mixed-use development Ayala North Exchange and five-storey commercial office McKinley Exchange.

ALI intends to use the proceeds from the REIT offering to buy Teleperformance Cebu and to invest in other real estate properties in Metro Manila and key regions.

Aside from BPI, AREIT tapped PNB Capital & Investment Corp. and SB Capital Investment Corp. as domestic co-lead underwriters, and BPI Capital and UBS AG Singapore Branch as joint bookrunners for the offering.

ALI is set to be the first property developer to do a REIT offering in the Philippines. Earnings of ALI in the first quarter stood at P4.3 billion, down 41% from a year ago, as bookings and project completions were dampened by the Taal Volcano eruption and the coronavirus-related lockdown.

Shares in ALI at the stock exchange shed 20 centavos or 0.60% to P33 each on Wednesday. — Denise A. Valdez