Ayala Land-backed AREIT Inc., the country’s first Real Estate Investment Trust (REIT) is set to acquire Teleperformance Cebu (TP Cebu), a building in the city's IT Park which houses business process outsourcing (BPO) operations and a fast food chain.
In a regulatory filing on Wednesday, AREIT Inc. said it inked a Deed of Sale to purchase Teleperformance Cebu from ALO Prime Reality Corp., a wholly-owned subsidiary of its sponsor Ayala Land Inc.
The purchase price for TP Cebu costs P1,450,000,000.00, exclusive of value-added taxes. AREIT said proceeds from the initial public offering (IPO) will be used for the purchase.
AREIT completed its maiden offering in August with shares priced at P27.00 apiece, generating an estimated P13.6 billion. The company offered 47.864 million primary shares and 409.019 million secondary shares, with an overallotment option of 45.688 million secondary shares to the investing public.
The maiden acquisition of TP Cebu will increase AREIT’s dividend yield consistent with its growth strategy of acquiring prime real estate assets with stable occupancy, the company said.
AREIT is scheduled to pay quarterly dividends starting September 2020 and is required to payout at least 90% of its income to its shareholders.
TP Cebu
TP Cebu is a Grade-A, PEZA-accredited, and LEED Gold Certified BPO development. Completed in 2013, it has a gross leasable area (GLA) of 18,092 square meters.
At present, the building is fully occupied with 17,682 leased by Teleperformance, and 410 square meters by McDonald's.
With the addition of TP Cebu to AREIT's portfolio, the company's total GLA will be increased to 172,000 square meters from 153,000 prior to the transaction.
“The acquisition in Cebu is strategic for AREIT. Most BPOs in Metro Manila have expansion sites and operations in Cebu because of its strong talent pool. Like in Metro Manila, Ayala Land has a significant share in the Cebu office market,” Carol Mills, AREIT president, said. By JON VIKTOR D. CABUENAS, TED CORDERO, GMA News
Source: Peso Economics
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