AREIT Inc. is a Philippine real estate investment trust (REIT) company which invests in properties of its sponsor, Ayala Land. Launched in 2020, it is the first REIT company in the Philippines.
 | |
| Formerly | One Dela Rosa Property Development, Inc. Ayala Land REIT, Inc. |
|---|---|
| Company type | Public |
| PSE: AREIT | |
| Industry | Real estate / Finance |
| Headquarters | , |
Area served | Philippines |
Key people | Jose Emmanuel Jalandoni, Chairman Carol Mills, Chief Timepass Officer |
| Products | Shares invested on commercial real estate |
| Revenue | ₱1.1 billion (Jan-Sept 2020) |
| Parent | Ayala Land |
| Website | www |
History
editThe legal framework enabling the establishment of REITs in the Philippines have been in place after the Real Estate Investment Trust Act of 2009 (Republic Act No. 9856) passed into law on December 17, 2009. But restrictive tax policies and high friction cost discouraged the setting up of REITs in the country.[1]
After regulations on REITs were relaxed in January 2020,[2] Ayala Land announced in February 2020 that its subsidiary AREIT has filed a REIT offering to the Securities and Exchange Commission (SEC).[3][4] AREIT Inc. was originally established as a real estate company under the name One Dela Rosa Property Development Inc. changing its name to AyalaLand REIT, Inc. on April 12, 2019, prior to adopting its current name on June 28, 2019.[5]
AREIT had its initial public offering in the Philippine Stock Exchange on August 13, 2020, becoming the first listed REIT in the Philippines.[6][7] AREIT recorded an income of ₱1.1 billion during the January to September 2020 period, which is three percent higher than its REIT plan.[8]
Properties
editAREIT started out with three office buildings under its portfolio namely the Solaris One, Ayala North Exchange, and the McKinley Exchange all of which are in Makati.[9][10] In January 2021, AREIT disclosed its acquisition policy saying a prospect property has to be "stable, with high occupancy, long term contracted leases with escalation" and that it is averse in investing on properties involving Philippine Offshore Gaming Operators (POGOs) or online gambling.[11] AREIT focuses on acquiring office properties associated with business process outsourcing.[12]
AREIT acquired its first property outside Metro Manila, with the acquisition of Teleperformance in Cebu (TP Cebu) development within the Cebu IT Park in September 2020.[13] The company gained another property the following month; The 30th, a commercial center in Pasig, under a long-term lease from its sponsor Ayala Land.[14]
In January 2021, AREIT acquired 9.8 hectares (24 acres) of land in Laguna Technopark through a 7-year lease from Integrated Micro-Electronics.[15]
References
edit- ^ Nordberg, Antton. "The Future of REIT in the Philippines". KMC MAG Group. Inc. Retrieved May 11, 2015.
- ^ Endo, Jun (March 2, 2021). "Philippines' young REIT market snubbed by foreign investors". Nikkei Asia. Retrieved June 17, 2021.
- ^ Cordero, Ted (February 7, 2020). "Ayala Land files Philippines' first REIT listing". GMA News. Retrieved June 17, 2021.
- ^ Cordero, Ted (July 18, 2020). "PSE approves Philippines' first REIT IPO". GMA News. Retrieved June 17, 2021.
- ^ "About Us". AREIT Inc. Retrieved June 17, 2021.
- ^ Camus, Miguel (August 14, 2020). "First REIT listing arrives, but stumbles in debut". Philippine Daily Inquirer. Retrieved June 17, 2021.
- ^ "AREIT, a trailblazer in the country's REIT path". The Philippine Star. March 5, 2021. Retrieved June 17, 2021.
- ^ Romero, Maria (January 7, 2021). "AREIT acquires P1.1B prime land in Laguna". Daily Tribune. Concept &Information Group, Inc. Retrieved June 17, 2021.
- ^ Cabuag, V.G. (October 26, 2020). "AREIT acquires Ayala Land mall in Pasig". BusinessMirror. Retrieved June 17, 2021.
- ^ Cabuyag, VC (July 13, 2020). "SEC greenlights Ayala Land bid to pioneer REITs in PHL". BusinessWorld. Retrieved June 17, 2021.
- ^ "AREIT aims to double leasing portfolio in Metro Manila, Cebu". ABS-CBN News. January 19, 2021. Retrieved June 17, 2021.
- ^ Burgos, Jonathan (June 17, 2021). "Philippine Tycoon Andrew Tan's Megaworld Seeks $565.5 Million From Call Center REIT Listing". Forbes. Retrieved June 17, 2021.
- ^ Gonzales, Iris (September 17, 2020). "AREIT completes acquisition of Teleperformance in Cebu". The Philippine Star. Retrieved June 17, 2021.
- ^ Almazan, Faye (October 24, 2020). "Areit to acquire The 30th for P5.1B". The Manila Times. Retrieved June 17, 2021.
- ^ Loyola, James (January 7, 2021). "AREIT buys Laguna Technopark lot for P1.1-B". Manila Bulletin. Retrieved June 17, 2021.