PROPERTY giant Ayala Land Inc. (ALI) intends to boost its expansion in the Luzon and Visayas regions using funds raised from a block sale of shares in its real estate investment trust, AREIT Inc.

ALI and its wholly owned unit, Westview Commercial Ventures Corp., last week successfully raised around P3.16 billion following a block sale of 98 million common shares in AREIT.

In a regulatory filing last Friday detailing its reinvestment plan, ALI said it intended to use the proceeds to fund ongoing and future investments in real estate properties in Metro Manila, Laguna, Pampanga, Tarlac and Cebu.

ALI noted that it may undertake the investment on its own or via other subsidiaries and affiliates through a capital infusion or through shareholder financing.

The reinvestment plan will involve eight residential properties, one office for sale, three estate developments, and one hotel, ALI said.

"All disbursements for such projects are intended to be distributed within one year upon receipt of the proceeds from the sale of AREIT shares."

With 52 estates across the country, the Ayala-led property developer clarified that the proceeds from the block sale would not be reinvested in any infrastructure projects.

"For purposes of monitoring, Ayala Land shall prepare a quarterly progress report of actual disbursements on the projects covered by this reinvestment plan," it continued.

"The reinvestment plan and the status of its implementation shall be included in the appropriate structured reports of Ayala Land to the SEC (Securities and Exchange Commission) and the PSE (Philippine Stock Exchange)."

In its filing, ALI said the block sale of AREIT shares was made in preparation for a property-for-share swap among ALI and its subsidiaries — Greenhaven Property Ventures Inc., Cebu Insular Hotel Co. Inc. and Buendia Christiana Holdings — and AREIT.

Under the swap, AREIT will issue about 841.3 million primary common shares to ALI and its subsidiaries, at a price of P34 apiece, in exchange for four commercial buildings in Makati and Cebu as well as a parcel of industrial land in Zambales. The shares will be issued from AREIT's unissued shares.

The P28.6-billion property-for-share swap deal, approved by AREIT stockholders in February, is expected to be completed by the third quarter of this year.

ALI's share price fell 1.87 percent to P28.85 last Friday.

Read The Rest at :