• By The Financial District


Ayala Real Estate Investment Trust is going through with its Php12,335,841,000 billion IPO launch the first real estate investment trust (REIT) company in the country following the issuance of the REIT Act in 2009.

The company disclosed to the Philippine Stock Exchange the AREIT shall provide a new asset class to the public, allowing investors to diversify their portfolio and democratize ownership of real property assets in the Philippines. 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 AREIT’s sponsor, Ayala Land Inc. (“ALI”), or an alternative property from ALI, or any of its subsidiaries or affiliates, that financially and strategically meets or exceeds Teleperformance Cebu and AREIT's financial and strategic investment criteria. The net proceeds from the secondary offer shall be reinvested by ALI, as sponsor to AREIT, in real estate projects located in the Philippines within a period of one (1) year from receipt thereof, consistent with applicable rules and regulations.   The IPO shall include (i) the offer and sale of up to 456,883,000 common shares of AREIT, consisting of 47,864,000 new common shares to be issued and offered by AREIT by way of a primary offer, 409,019,000 existing common shares offered by ALI as selling shareholder pursuant to a secondary offer, and (ii) an offer of up to 45,688,700 optional shares pursuant to an over-allotment option.  Seventy percent (70%) of the firm shares shall be for the institutional offer to international and domestic qualified institutional buyers while the remaining thirty percent (30%) shall be offered to eligible trading participants and to local small investors following the approved implementing guidelines.  The offer period will run from Monday, July 27, 2020, 9:00 a.m., to Monday, August 3, 2020, 12:00 noon, Manila time. The target listing of AREIT’s shares will be on August 13, 2020. ALI as sponsor is committed to grow and support AREIT post-listing. Assuming full exercise of the over-allotment option, ALI shall remain as majority shareholder, holding a 51% interest in AREIT.   BPI Capital Corporation acts as the Sole Global Coordinator and Joint Bookrunner for the IPO while UBS AG Singapore Branch is the Sole International Bookrunner for the international tranche of the IPO. BPI Capital Corporation, PNB Capital and Investment Corporation, and SB Capital Investment Corporation, will collectively act as the Joint Lead Underwriters for the domestic tranche, and together with the Sole International Bookrunner, will underwrite the respective tranches of the IPO.