Ayala-backed AREIT prices PH’s first REIT IPO, trims target to $249m

A trader takes orders on a telephone at the Philippine Stock Exchange. Source: Reuters

AREIT Inc, the Philippines’ first-ever real estate investment trust (REIT) sponsored by listed property giant Ayala Land Inc, has priced its initial public offering (IPO) at 27 pesos per share as it seeks to raise up to 12 billion pesos ($249 million).

Ayala Land had earlier said that AREIT was seeking to raise up to 15 billion pesos ($303 million) in what will be the country’s first REIT listing, which would allow investors to diversify their portfolio and democratise ownership of real property assets in the Philippines.

In a disclosure to the Philippine Stock Exchange (PSE) on Thursday, Ayala Land said the IPO will include the offer and sale of up to 457 million common shares of AREIT, consisting of 48 million new common shares, 409 million existing common shares offered by Ayala Land, and 46 million optional shares.

AREIT intends to use the net proceeds from the primary offer to fund the intended acquisition of Teleperformance Cebu from ALO Prime Realty Corporation, a wholly-owned subsidiary of Ayala Land. The proceeds from the secondary offer will be reinvested in real estate projects in the Philippines.

About 70 per cent of the shares shall be on offer to international and domestic qualified institutional buyers while the remaining 30 per cent shall be offered to eligible trading participants and local small investors.

The offer period will run from July 27 to August 3, 2020. AREIT’s shares are scheduled to list on August 13.

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.

AREIT’s portfolio consists of investment-grade commercial assets in prime business locations in Makati City. All properties are occupied and tenants include BPO companies and multinationals.

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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.