MANILA (Reuters) - Philippines’ Ayala Land Inc (ALI.PS) has filed an application for an up to 14.4 billion Philippine pesos ($282 million) real estate investment trust (REIT) share sale, the first in the country, the country’s corporate regulator said late Friday.
The Philippine government last month sweetened the rules on REITs, which manage real estate assets that regularly generate profits and distribute dividends to investors, with lower public float and tax perks.
In a regulatory filing, Ayala Land said its subsidiary, AREIT Inc, plans to offer as many as 478.64 million, mostly secondary, shares at a maximum price of 30.05 pesos apiece. It has an option to sell another 23.93 million overallotment shares.
The maximum offer price is a placeholder amount included in the filing to securities regulators. It is not uncommon to cut the maximum offer price late in the sale process.
AREIT owns three commercial buildings in Makati, the country’s main financial hub in the capital. Parent firm Ayala Land, one of the country’s largest landlords, will raise as much as 1.36 billion pesos in net proceeds that will fund future property investments, the company said.
The Philippines’ REIT law was enacted in 2009, but it has failed to take off because a high public ownership requirement and transaction taxes turned off property companies.
Reporting by Neil Jerome Morales; Editing by Kenneth Maxwell