January 7, 2021- Ayala Land-sponsored AREIT Inc. is acquiring another property to boost its portfolio of income-generating properties.
In a disclosure to the Philippine Stock Exchange on Wednesday, AREIT—the country’s first real estate investment trust (REIT)—said it purchased 9.8 hectares of land owned by Technopark Land Inc. (TLI) in Laguna Technopark.
The land was purchased through a deed of sale worth P1.1 billion.
Comprised of four parcels, the land is being leased by Integrated Micro-Electronics, Inc. (IMI) for the next seven years, according to AREIT.
IMI is a listed subsidiary of Ayala Laguna Technopark, which is a 471-hectare premier industrial park spanning portions of Biñan and Santa Rosa in Laguna currently managed by AyalaLand Logistics Holdings Corp. (ALLHC), a listed subsidiary of Ayala Land Inc.
“The acquisition of this land will directly contribute to AREIT’s income starting this month, adding to the earnings generated by the company’s existing buildings,” AREIT said.
“This will increase the distributable income to its shareholders, demonstrate AREIT’s ability to deliver stable and regular dividends, and strengthen its potential for capital appreciation,” it added.
Together with the acquisition of The 30th in Pasig, AREIT said its portfolio will reach 344,000 square meters of leasable space, double its current size of 171,000 square meters, only five months after its initial public offering.
The latest acquisition also brings up AREIT’s total property value to P37 billion.