Net proceeds from AREIT’s offering of secondary shares will be reinvested by parent firm Ayala Land in other local real estate and/or infrastructure projects within a year, as required by existing regulations.
On the other hand, net proceeds from the primary offer will be used by AREIT for the expansion of its building portfolio through the acquisition of a fourth building, Teleperformance Cebu, excluding the land, from a subsidiary of the sponsor or an alternative property from the sponsor or any of its subsidiaries or affiliates.
REIT is a corporation that primarily invests in income-generating real estate such as office spaces, shopping malls, service apartments, hotels, hospitals and warehouses. It gives investors an opportunity to invest directly in the finished projects rather than in the developer itself. This was meant to attract dividend-seeking investors because the REIT law requires the distribution of at least 90 percent of income as dividends annually.
The REIT Act, passed by Congress in 2009, allows REIT companies to list and trade its shares of stock, allowing developers to recycle capital for further property development and expansion initiatives. The SEC said on Friday it would issue the corresponding order of registration and the permit to offer securities for sale upon determination that the company, formerly known as One Dela Rosa Property Development Inc., has complied with the remaining requirements.
Philbizwatcher How can you trust about Real Estate if you did not traceback their certificate of land titles HouseofRepsPH senatePH