Ayala Land Announces Major Sale of AREIT Shares in Significant Portfolio Transaction

In a notable financial maneuver, Ayala Land, Inc. (ALI), one of the leading real estate developers in the Philippines, has successfully executed a significant block sale of shares in AREIT, Inc.. This strategic sale is part of Ayala Land's efforts to realign its stake in AREIT in anticipation of a significant asset infusion and to ensure compliance with public ownership requirements.

The sale involved 181 million of AREIT, Inc., priced at Php31.10 each, totaling approximately Php5.63 billion, exclusive of fees and taxes. This proactive move by Ayala Land was to address the public ownership structure in anticipation of the company's largest infusion of malls and industrial land into AREIT, valued at over P28 billion.

Market analysts have indicated that additional sales of AREIT shares may be necessary to maintain the mandatory 33 percent level for REITs. The sale of around 260 million shares could be required to meet this regulation following the significant asset infusions. As part of this ongoing strategy, Ayala Land's divestment on Friday represents the first tranche of shares to be sold, with more expected throughout the year.

The share sale on Friday was facilitated by reputable institutions, including BPI Capital Corp., UBS AG Singapore Branch, and CLSA Ltd., serving as Placement Agents, and was upsized by over 40 percent, anchored by high-quality long-only institutional investors, indicating robust market confidence in AREIT's value proposition and Ayala Land's strategic direction.

This strategic sale and the forthcoming asset infusion underline Ayala Land's commitment to maintaining a balanced and dynamic investment portfolio. Adhering to both Philippine and U.S. securities laws, specifically to Regulation S and Rule 144A under the , Ayala Land ensures all transactions are executed with the highest standards of transparency and legal integrity.

The strategic sale not only signifies Ayala Land's proactive approach to regulatory compliance and market dynamics but also paves the way for the planned asset infusion into AREIT. The infusion will include premier assets such as Ayala Triangle Gardens Tower 2, luxurious segments of Greenbelt Malls 3 and 5, Holiday Inn and Suites in Makati, and the Seda Hotel at Ayala Center Cebu. Additionally, a substantial 276-hectare industrial land in Zambales is being transferred from ACEN for P6.8 billion, signifying a significant expansion of AREIT's asset portfolio and solidifying its position in the market.

Ayala Land, Inc., a subsidiary of Ayala Corporation, remains a leading entity in the real estate development sector in the Philippines, known for its innovative and sustainable projects. Its strategic initiatives, including the recent sale of AREIT shares and planned asset infusion, reflect a deep understanding of market trends and a commitment to maintaining a robust and diversified portfolio.

AREIT, Inc., with the backing of Ayala Land and the addition of substantial assets, is poised to reinforce its standing in the market. The strategic decisions made by Ayala Land, culminating in the block sale and upcoming asset infusion, are indicative of a forward-thinking approach, aimed at strengthening AREIT's market position and ensuring compliance with regulatory standards.

Source (SEC Filing): https://edge.pse.com.ph/openDiscViewer.do?edge_no=96c4e23cdd2dceb2abca0fa0c5b4e4d0