MAKATI CITY — Shareholders of AREIT Inc. have approved a PHP17.33-billion property-for-share exchange with sponsor Ayala Land Inc. and its subsidiaries, paving the way for six malls and hotels to be added to the real estate investment trust's expanding portfolio. The approval was obtained during a Special Stockholders' Meeting conducted on September 23, 2026. As part of the transaction, AREIT will issue 462.48 million primary common shares priced at PHP37.48 each in exchange for the properties, with the shares coming from the company's unissued capital stock.
What the Deal Includes
The property contribution consists of four malls and two hotels. Two of the malls are situated in Makati: Glorietta 4 at Ayala Center and Ayala Malls Circuit. The remaining properties are Ayala Malls Capitol Central in Bacolod City, Ayala Malls Cloverleaf in Quezon City, the 578-room New World Hotel Makati, and the 438-room Seda Vertis North in Quezon City. Together, the six assets have a gross leasable area totaling 300,247 square meters. AREIT will take ownership of the buildings, with the malls transferred through a direct lease arrangement and the hotels covered by master leases that combine fixed and variable components.
Why This Matters for Makati
The addition of Glorietta 4, Ayala Malls Circuit, and New World Hotel Makati to the AREIT portfolio further strengthens Makati's position as the country's premier destination for institutional real estate investment. The transaction will be completed entirely through shares, enabling AREIT to grow its portfolio without requiring a substantial cash outlay. The company expects to execute the deed of exchange and submit the required applications to the Securities and Exchange Commission by October, with approval targeted before the end of the year and tax clearances anticipated in 2027.
