Politics

Ayala Land removes two projects from latest reinvestment plan

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AYALA Land, Inc. (ALI) removed two projects in its reinvestment plan for the net proceeds it received from the sale of its shareholdings in AREIT, Inc. amounting to P3.44 billion.

In a regulatory filing on Tuesday, the company amended the reinvestment plan it passed on May 2, 2022, to cut down the recipient projects to six from seven last year.

The block sale of its shareholdings was conducted in preparation for the property-for-share swap between AREIT and the sponsor company.

As AREIT’s sponsor, ALI needs to submit a sworn statement containing the reinvestment plan for the proceeds raised from the sale of shares. The statement is to be submitted to the Securities and Exchange Commission, the Philippine Stock Exchange and the Bureau of Internal Revenue.

According to the company, ALI has disbursed the proceeds to various investments following its reinvestment plan from May 2, 2022 to the end of the third quarter last year.

“ALI intends to use the sale of proceeds from the AREIT shares to fund ongoing and future investments in real estate properties in Metro Manila, Batangas, Cavite, and Laguna.

The projects removed were the land acquisitions of the Quezon City and Bulacan properties, which were at P290.46 million and P125.17 million, respectively, while it added a new acquisition in Caloocan worth P156.95 million.

The company also made changes to the disbursements on the remaining four projects in which it added P119 million to the other Quezon City property to reach P2.1 billion and decreased P5 million to the disbursement in Batangas property to P745 million.

The company also decreased the disbursements to its land acquisition by P10.23 million to P108.14 million, while it added P154.91 million to the ongoing construction of One Vertis Plaza to P265.21 million.

ALI is the disbursing entity for the properties in Caloocan and Cavite, One Vertis Plaza and Andacillio, while the Batangas property has Laguna Technopark, Inc. as its disbursing entity.

Meanwhile, the remaining Quezon City property will be disbursed by ALI Eton Property Development Corp., a joint venture between ALI and Eton Properties Philippines, Inc.

On Tuesday, shares in ALI closed 70 centavos or 2.28% lower to P30 apiece, while AREIT stocks climbed by 15 centavos or 0.42% to P36.10 each. — Justine Irish D. Tabile