By P.R. Venkat

Ayala Land Inc. is planning to raise 12.34 billion Philippine peso ($250 million) in gross proceeds from an initial public offering of its office real estate assets.

AREIT, which will be the country's first listed real estate investment trust, will sell a total of 456.88 million shares at a price of PHP27 each, Ayala Land said Thursday.

Shares of AREIT will start trading on the Philippines Stock Exchange from Aug. 13, the company said.

The final offer price is lower than the initial guidance of PHP30.05 a share.

After the IPO is completed, Ayala Land will own a controlling 51% stake in AREIT.

AREIT's portfolio comprises several office-towers in Makati, Manila's financial district.

Ayala Land plans to use the proceeds to make investments in its Philippine real estate projects.

BPI Capital Corp. and UBS AG are advising Ayala Land on the IPO. 



  Write to P.R. Venkat at venkat.pr@wsj.com