PH-listed Ayala Land gets initial nod for country’s first REIT IPO

A visual of one of Ayala Land's township projects.

The Securities and Exchange Commission (SEC) of the Philippines has issued a pre-effective approval for the initial public offering (IPO) of the country’s first-ever real estate investment trust (REIT) sponsored by listed property giant Ayala Land, which seeks to raise up to 15 billion pesos ($303 million).

In a disclosure to the Philippine Stock Exchange (PSE) on Tuesday, Ayala Land said AREIT Inc will offer 1.092 billion common shares on the main board of the PSE. The offering will comprise 47.86 million new common shares and up to 409.19 million existing common shares, with an over-allotment option of up to 46 million secondary shares, at 30.05 pesos each ($0.61).

Ten per cent of the proceeds from the offer shares will be used by AREIT to fund the acquisition of the fourth commercial leasing asset in its portfolio, Teleperformance Cebu, a Grade-A business process outsourcing development located in Cebu IT Park.

The remaining 90 per cent of the proceeds will be used by Ayala Land for reinvestment into its real estate projects in the Philippines. The listing will be the country’s second IPO this year, following the debut of MerryMart Consumer Corp, which raised 1.6 billion pesos ($32 million).

Assuming full exercise of the overallotment option, the public offering would allow the public to own 40 per cent of the issued and outstanding common shares of AREIT.

Ayala Land will retain a 41.61 per cent shareholding in AREIT, while its subsidiary AyalaLand Offices, Inc. will own the remaining 9.39 per cent upon completion of the public offering.

AREIT’s portfolio consists of investment-grade commercial assets in prime business locations in Makati City. All properties are occupied by tenants consisting of BPO companies, multinationals and local headquarter offices, among others.

With the SEC pre-effective approval, AREIT is closer to launching the country’s maiden REIT. Ayala Land said it will secure approval from the PSE of its listing applications and its Order of Registration and Permit to Sell from the SEC.

Subject to approval by the PSE, ­AREIT plans to run its public offering from July 27 to 31 and list under the ticker “AREIT” on August 7.

The listing could help stir a weak public market in the Philippines. Early this month, Converge ICT, a Warburg Pincus-backed fiber-optic broadband services provider in the Philippines, filed for an IPO of up to $725 million in what could be the largest listing in the country ever.

So far this year, the local bourse only hosted one IPO – grocer MerryMart Consumer Corp, which raised $31.5 million in May. Last year, Metro Pacific canceled the listing of its hospital unit while consumer tech company Cal-Comp Technology delayed a proposed $125-million IPO, citing market conditions.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.