MREIT, Inc., the listed real estate investment trust of Megaworld Corp., said Thursday it signed a deal with its sponsor Megaworld for the potential acquisition by the third quarter of seven grade A office buildings with gross leasable space of 150,500 square meters.
It said the assets being considered for acquisition include the 9,500-square meter Two West Campus and the 36,400-square meter Ten West Campus in McKinley Hill; the 20,500-square meter Science Hub Tower 3 and the 20,700-square meter Science Hub Tower 4 in McKinley West; the 18,200-square meter One Fintech Place and 18,100-square meter Two Fintech Place in Iloilo Business Park and; the 27,100-square meter Davao Finance Center in Davao Park District.
These building generated combined rental income of P1.2 billion in 2022.
“These properties boast high average occupancy rate of 94 percent and quality tenants, marking a significant step towards our commitment to deliver sustained growth and value to our investors,” said Kevin Tan, president and chief executive officer of MREIT.
He said MREIT will conduct due diligence work over the coming weeks to ensure the viability of the assets before signing a definitive deal by the third quarter of this year.
With these new assets, MREIT’s portfolio will grow 46 percent to around 475,500 square meters, bringing it closer to its target of 500,000 square meters of assets under management by end-2024.
MREIT has already injected eight office buildings into its portfolio and grew its value by 25 percent to P62 billion since its initial public offering in 2021.
