Condo sale boosts AREIT’s Seda Lio acquisition fund
LISTED AREIT, Inc. has generated P42.69 million from the sale of three office condominium units in Muntinlupa City, which will be used to fund the company’s acquisition of the Seda Lio resort hotel in El Nido, Palawan.
The condo units, located at Ayala-Life FGU Center Alabang, were sold to real estate developer Next Asia-Land, Inc. on Sept. 5, AREIT said in a regulatory filing on Monday.
ARET said the three condo units have an aggregate gross floor area of 339 square meters.
“The proceeds received from the sale of the three office condo units will be used in the acquisition of Seda Lio,” AREIT said.
In January, AREIT finalized the acquisition of Seda Lio resort hotel in El Nido, Palawan from Ayala Land, Inc. (ALI) unit Econorth Resort Ventures, Inc. for P1.19 billion.
AREIT is the real estate investment trust of ALI.
Seda Lio is a 153-room resort hotel that caters primarily to leisure tourists, families, social, and corporate events, and other visitors.
The acquisition is part of AREIT’s plan to increase its footprint and asset diversification.
For the first half, AREIT reported a 44% increase in net income to P2.9 billion, with revenues climbing by 43% to P4.2 billion.
AREIT is expected to grow its assets under management to P117 billion for 2024 upon regulatory approval of the asset-for-share swap with its sponsor, ALI, and its subsidiaries and related companies for P28.6 billion worth of prime assets.
These properties include the Ayala Triangle Gardens Tower Two Office building, Greenbelt 3 and 5, Holiday Inn in Ayala Center Makati, Seda Ayala Center Cebu, and a 276-hectare land in Zambales for solar power plant operations.
On Monday, AREIT shares fell by 1.39% or 50 centavos to P35.45 per share. — Revin Mikhael D. Ochave