By BusinessWorld,Cedtyclea

Copyright bworldonline

AYALA LAND, Inc. (ALI) has earmarked P2.7 billion from last year’s sale of 75 million shares in its real estate investment trust unit AREIT, Inc. for a Metro Manila land acquisition as well as office and residential projects.

“Following current regulations, Ayala Land intends to invest its net proceeds in one land acquisition in Metro Manila, one residential development, and one office development,” ALI said in a reinvestment plan submitted to the local bourse on Tuesday.

The proceeds came from a block sale transaction of 75 million AREIT shares in December last year, which raised about P2.76 billion.

According to the reinvestment plan, ALI is allocating P2.02 billion for the acquisition of a Metro Manila property.

The company has also earmarked P592.85 million for two office buildings in the 29-hectare Vertis North development in Quezon City. The 25- and 26-story buildings are expected to cater to business process outsourcing (BPO) tenants, it said.

Meanwhile, P148.06 million will go to Park Central Towers North & South, a two-tower residential development in Makati City.

“All disbursements for such projects are intended to be distributed within one year upon receipt of the proceeds from the sale of the AREIT shares,” ALI said.

The developer added it will prepare a progress report on the actual disbursements for the covered projects.

Last week, ALI said it had disbursed P2.7 billion raised from another sale of 75 million AREIT shares for separate hotel and residential developments.

ALI posted an 8% increase in first-half net income to P14.2 billion, while property development revenue inched up 0.77% to P52.3 billion.

On Wednesday, ALI shares rose by 0.21% or five centavos to close at P24.40 each, while AREIT shares gained 0.12% or five centavos to P43 apiece. — Beatriz Marie D. Cruz