Megaworld Corp., the property development arm of tycoon Andrew Tan, said Tuesday it plans to invest the P500 million it raised from the sale of MREIT shares in its township projects in Bacolod, Cebu and Pasig.
The funds, which will bankroll capital spending for this year in the three townships, will be used in the development of malls, offices and other projects within the township.
The largest share, or P200 million, will be invested in the Bacolod projects while The Mactan Newtown and ArcoVia City will get P175 million and P125 million, respectively.
Megaworld last week sold the 40.65 million MREIT shares at a price of P12.30, a discount to the stock’s market price, to “a reputable, long-term institutional investor.” The share block represents a 1.5 percent stake in MREIT, Megaworld’s listed real estate investment trust.
All the MREIT shares sold are owned by Megaworld, ensuring there won’t be any ownership dilution as a result of the sale. The transaction will also raise the public float of MREIT to 44.4 percent, building enough headroom for future property-for-stock swaps with Megaworld.
