ALI raises P3.7 billion from sale of AREIT shares

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March 1, 2026 | 12:00am

MANILA, Philippines — Property giant Ayala Land Inc. (ALI) has raised P3.7 billion from the block sale of a new batch of shares in its listed real estate investment trust.

In a stock exchange filing, ALI said it sold a total of 88 million common shares of AREIT Inc. at a transaction price of P42 apiece pursuant to a placement agreement with UBS AG Singapore Branch and BPI Capital Corp.

ALI said proceeds from the block sale would be settled on March 3, subject to the terms and conditions of the placement agreement.

The company intends to submit the required reinvestment plan detailing the use of proceeds obtained from the block sale in due course.

For this year, ALI is earmarking P70 billion to P80 billion in capital expenditures, about 38 percent of which will be used for its leasing projects.

Leasing is expected to be a key growth driver for ALI this year, with the company’s EBITDA seen balancing between leasing and property development by 2027.

AREIT, for its part, ended 2025 with a total gross leasable area of 4.3 million square meters, including 1.4 million square meters of building GLA and an overall occupancy rate of 99 percent.

Its assets under management grew to P139.3 billion, spanning a diversified portfolio of offices, retail, hotels and industrial land.

To accelerate portfolio growth, AREIT secured stockholder approval in December last year for a property-for-share swap transaction with ALI and Summerhill Commercial Ventures Corp., involving Ayala Center Cebu and Ayala Malls Feliz, valued at P19.5 billion in exchange for 441.13 million AREIT shares.

The planned infusion is expected to increase AREIT’s assets under management to P159 billion upon completion.