AREIT completes P1.2-B cash acquisition of 153-room Seda Lio resort hotel
AREIT [AREIT 33.95, down 0.4%; 163% avgVol] [link] announced that it completed the acquisition of the 153-room Seda Lio resort-hotel in El Nido from subsidiaries of its sponsor, Ayala Land [ALI 32.30, down 3.0%; 144% avgVol]. The purchase price of P1.192 billion was paid in cash, with 95% due on the signing of the Deed of Exchange, and the remaining 5% due by the end of Q3. AREIT said that the transaction is part of its “2024 growth plans”, which include the additional transfer of Ayala Triangle Gardens Tower 2, Greenbelt 3, Greenbelt 5, Seda Hotel, and Holiday Inn and Suites in Makati. AREIT will also acquire a 276-hectare piece of industrial land from ACEN [ACEN 4.07, down 4.5%; 57% avgVol]. Once AREIT has completed all of the transactions, it will increase the value of its assets under management from P87 billion to P117 billion. The remaining parts of this transaction will be purchased using a property-for-share swap that will be voted on by the shareholders at the Special Stockholders Meeting on February 12.