AREIT, Inc. has acquired 9.8 hectares of land owned by Technopark Land, Inc. (TLI) in a move that could help boost its income generation capabilities.
In a regulatory filing on Wednesday, the company said it purchased TLI’s land that consists of four parcels of land and is being leased by Integrated Micro-Electronics, Inc. (IMI) for the next seven years.
AREIT said the land is situated in Laguna Technopark, and was bought via a deed of sale amounting to P1.1 billion, inclusive of value added tax.
“The acquisition of this land will directly contribute to AREIT’s income starting this month, adding to the earnings generated by the company’s existing buildings,” the disclosure said.
“This will increase the distributable income to its shareholders, demonstrate AREIT’s ability to deliver stable and regular dividends, and strengthen its potential for capital appreciation,” it added.
According to the disclosure, Laguna Technopark is an industrial park that spans 471 hectares. It covers portions of Biñan and Santa Rosa in Laguna, and is managed by AyalaLand Logistics Holdings Corp., a subsidiary of Ayala Land, Inc.
AREIT said that together with its acquisition of The 30th in Pasig last October, its portfolio will reach 344,000 square meters of leasable space, higher than the current figure of 171,000 square meters. It also puts the company’s total property value to P37 billion.
“Aside from being value-accretive to investors, AREIT’s assets promote job creation for Filipinos. AREIT’s office buildings are home to top local and global companies that employ over 50,000 Filipino workers, including this newly acquired land where over 5,000 jobs are generated,” AREIT President and Chief Executive Officer Carol Torres-Mills said.
In August last year, AREIT had its P12.33-billion initial public offering (IPO), which marked the first real estate investment trust (REIT) listing in the country. Under REIT guidelines, AREIT must reinvest its offer proceeds in the Philippines within a year from its IPO.
On Wednesday, shares in AREIT at the stock exchange fell 0.17% or five centavos to close at P28.95 per piece. — Revin Mikhael D. Ochave