Ayala Land Inc. (ALI), the real estate arm of Ayala Corporation, raised P2.67 billion through a private placement. The company sold 75 million common shares of its real estate investment trust, AREIT Inc. Each share was priced at P35.60. This represents a 7.5% discount, the widest markdown for an AREIT placement in years.
Ayala Land shares fell nearly 4% following the announcement. AREIT stock dropped almost 6%. The sale occurred amid investor concerns over high borrowing costs and weak housing demand.
Proceeds are intended for a mandatory reinvestment plan. The transaction highlights the increasing importance of capital flexibility in a challenging real estate market.