Mreit Inc., the real estate investment trust of Megaworld Corp., plans to diversify its assets to include the shopping malls of its sponsor.
Kevin Andrew L. Tan, company president and CEO, said Megaworld tenant sales have grown past pre-pandemic levels, the enterprise having already removed rental concession since January.
“The Megaworld lifestyle malls portfolio is definitely looking to be a very attractive diversification opportunity for Mreit. We roughly have about 484,000 square meters of gross leasable area currently in the Megaworld lifestyle portfolio, which can be potentially injected into Mreit,” he noted.
Mreit at this point banks on the continued growth of the information technology business process management (IT-BPM) industry as its mainstay office space portfolio.
Tan said as the business process outsourcing sector continue to tap local talents for its labor needs, Mreit will continue to see growth in its office space portfolio.
“The BPO industry remains stable. And we think challenges, if any, are only temporary, based on our conversations with customers. Market occupancy will likely stabilize and improve in the long term,” he said.
Tan said the growth of the BPO sector will also help the company map out expansion plans in areas that have attractive long-term growth potential situated in prime areas.
“This will include Megaworld prime township properties in and outside of Metro Manila,” he said.
Only last week, Mreit signed a deal with its sponsor to acquire seven office assets in Taguig, Iloilo and in Davao that as of end-2022 generated combined revenue reaching P1.2 billion.
The potential additions include Two West Campus, which has 9,500 square meters; Ten West Campus, 36,400 sqm in McKinley Hill in Taguig; Science Hub Tower, 3,20,500 sqm; Science Hub Tower 4, 20,700 sqm in McKinley West; One Fintech Place, 18,200 sqm and Two Fintech Place, 18,100 sqm both in Iloilo Business Park; and Davao Finance Center, 27,100 sqm, in Davao Park District.
“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,” Tan said.
