AREIT raises P489M from share sale for growth

Real estate investment trust AREIT Inc. raised P489.36 million from the sale of 12 million common shares to institutional investors, as part of Ayala Land Inc.'s efforts to fund growth initiatives.

The shares were sold at P40.78 each, marking a discount of 2.9 percent from AREIT's previous closing price of P42 per share on July 2.

AREIT's stock fell by 1.19 percent on Thursday to close at P41.40, while Ayala Land Inc. shares declined by 1.59% or 45 centavos to P27.90 apiece.

Proceeds from this block sale will be settled on July 7 and will be used for expansion as detailed in an upcoming Reinvestment Plan.

AREIT recently acquired additional assets from its sponsor, Ayala Land Inc., including office buildings, malls, hotels, and industrial land.

The company is also set to add P21 billion worth of assets to its portfolio following a property-for-share swap approved by shareholders.