The real estate investment trust of property giant Ayala Land Inc. is tapping the debt market with the planned issuance of P15 billion in fixed-rate bonds.
Of the P15 billion bonds, AREIT will initially sell P3 billion, proceeds of which will be used largely for refinancing.
The P3 billion bond offer was assigned the highest issue credit rating of PRS Aaa, with a stable outlook by the Philippine Rating Services Corp.
AREIT has fully deployed the P13.5 billion it raised from its initial public offering in August last year. The funds were invested in 27 projects — One Ayala Office and Malls (P3.1 billion), Ayala Triangle Garden 2 (P1.01 billion), Mandarin Oriental (P805 million), Ayala Malls Vermosa (P754 million) ALI Logistics Industrial Park (P740 million), ALI land acquisition (P700 million), Alveo land acquisition (P610 million), Glorietta and Greenbelt Refresh (P616 million), ALI Logistics Artico Binan (P377 million), Avida land acquisition (P338 million), Seda Manila Bay (P255 million), West Gallery Place (P250 million), AT Verge Tower 1 (P240 million), Trinoma common station connections (P224 million), Alveo Cavite (P220 million), The Flats Cebu I.T. Park (P163 million), East Gallery Place (P150 million), Veranda Tower 1 (P150 million), Avida Laguna development (P135 million), ALI Logistics Lepanto redevelopment (P105 million), ALI Logistics Naic 2 (P103 million), ALI Logistics Binan 4 (P86 million), The Flats Cebu Business Park (P68 million), Seda One Ayala (P40 million), The Flats Circuit (P33 million), ALI Logistics Porac expansion (P25 million) and Arca South office (P24 million).
ALI set up AREIT in line with its goal to create a new equity instrument for local investors to invest in high-value commercial real estate while enabling the group to reinvest capital in the country.
Since its IPO, AREIT has grown its gross leasable are by more than 50 percent to 344,000 square meters, equivalent to P37 billion in total value of assets under management.