Ayala Land Bares Reinvestment Plan

Ayala Land Inc. will use the proceeds from a recent property-for-share swap deal with AREIT Inc. to develop several projects based on a reinvestment plan as of April 3, 2023.

Photo Insert: Ayala Land plans to invest the proceeds in three land parcels and two office-for-sale developments in Metro Manila and five residential developments in Metro Manila and Laguna.

"This reinvestment plan sets forth the planned use of the proceeds received by Ayala Land Inc. from the sale of a portion of its shareholdings in AREIT Inc. consisting of 205,000,000 shares from AREIT at a transaction price of P32.10 per share," the firm said.

"The net proceeds amounting to P6,536,167,000 (net of fees and taxes) from the sale were received on April 3, 2023."

Ayala Land plans to invest the proceeds in three land parcels and two office-for-sale developments in Metro Manila and five residential developments in Metro Manila and Laguna.

All disbursements for the projects are intended to be distributed within one year upon receipt of the proceeds from the sale of the AREIT shares, the company added.

Ayala Land noted that sponsors of real investment trusts that contribute income-generating properties to REITs have to submit a sworn statement to the Securities and Exchange Commission, the Philippine Stock Exchange, and the Bureau of Internal Revenue.

A reinvestment plan must also be submitted pertaining to the undertaking to reinvest any proceeds obtained from the sale of REIT shares or other securities issued in exchange for income-generating real estate transferred to the REIT.

Ayala Land's share price went by 5 centavos, or 0.18 percent, to P27.35 on April 4, Tuesday.

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic