Megaworld Corp., the property development arm of tycoon Andrew Tan, said Friday it launched an overnight placement of 279.4 million common shares of MREIT Inc. at an offer price of P13.00 per share.
The blocks sale of common shares of MREIT, the listed real estate investment trust of Megaworld, raises P3.63 billion. The block sale application will be filed with the Philippine Stock Exchange on Friday.
Megaworld said the proceeds from the block sale shall be settled on July 26. It added that a reinvestment plan detailing the use of proceeds from the block sale transaction will be submitted to regulators soon.
UBS AG acted as sole placement agent for the transaction.
MREIT has a portfolio of 14 mixed-use buildings located in Taguig City, Quezon City, and Iloilo City. These buildings are leased out to various offices, retail establishments, and hotels that generate a steady stream of income for the company. As a REIT, the company is required to declare nearly all of its income as dividend to shareholders.
