AYALA LAND COMPLETES SHARES PLACEMENT

Ayala Land, Inc. (ALI) successfully placed 680 million shares of its common stock at P20 per share for a total of P13.6 billion. The transaction was structured as a top-up placement where Ayala Corporation sold 680 million of its listed ALI shares and simultaneously subscribed to the same number of new ALI common shares.

Following this transaction, Ayala Corporation’s percentage ownership in the voting stock of ALI will be marginally reduced from 73.07% to 71.22% and its ownership in ALI’s common stock will be reduced from 53.06% to 50.43%.

The transaction is not expected to result in any impact on Ayala’s cash flow and net income.

The transaction was launched as a placement of 530 million shares at an indicative price range of P19.80 to P20.20 per share. Due to strong demand, ALI increased the offer size to 680 million shares. This landmark transaction represents the largest overnight placement by a real estate company in Southeast Asia since 2005, as well as the largest ever overnight placement in the Philippines.

ALI will use the proceeds of the share placement primarily to fund its next phase of expansion, enabling it to sustain its high growth trajectory. In addition to its previously announced P37 billion capital expenditure program for 2012, ALI has identified significant land banking opportunities amounting to approximately P36 billion over the next two to three years. Approximately P20 billion of this may be deployed in Makati City and other parts of Metro Manila and the balance in growth centers in Nuvali and other parts of Luzon and in the Visayas and Mindanao.

Furthermore, a portion of the proceeds is also expected to partially fund ALI’s strategic alliance with a group led by Mr. Ignacio R. Ortigas and resulting participation in OCLP Holdings, Inc., the parent company of Ortigas and Company Limited Partnership, for which it allocated an initial investment of P15 billion. This alliance is expected to provide ALI with access to prime properties in Metro Manila amounting to about 55 hectares.