AREIT sells assets to fund Seda Lio Hotel acquisition

AREIT Inc., Ayala Land’s real estate investment trust, has raised funds for its acquisition of the Seda Lio hotel in Palawan by selling three office condominium units in Alabang. The sale of the units, located at Ayala-Life FGU Center, generated PHP 42.69 million in cash installments, as disclosed to the Philippine Stock Exchange.

The proceeds from the sale will help finance AREIT’s PHP 1.19 billion purchase of Seda Lio, a 153-room resort in El Nido, Palawan. Owned by Ayala’s subsidiary Econorth Resort Ventures, Seda Lio caters to leisure tourists, corporate events, and social gatherings. The acquisition will provide AREIT with a guaranteed 25-year lease income starting in January 2024.

Carol T. Mills, AREIT President and CEO, emphasized that the transaction will expand the company’s asset portfolio and reduce concentration risk, increasing its assets under management from PHP 87 billion to PHP 117 billion.

This deal is part of AREIT's broader 2024 growth strategy, which includes significant asset infusions from Ayala Land, including flagship properties in Makati and other premium locations.

Aside from Seda Lio, other acquisitions in the plan include Ayala Triangle Gardens Tower 2, luxury Greenbelt mall wings, and several hotel properties.