MREIT Inc., the real estate investment trust of billionaire Andrew Tan, has filed an application with the Securities and Exchange Commission to raise its authorized capital stock to P8 billion from P5 billion. The move aims to support share swap transactions with its sponsor, Megaworld Corp.
Under a newly signed Memorandum of Understanding, MREIT agreed to swap its shares for income-generating real estate assets of Megaworld that meet MREIT’s investment criteria. These target growth assets are expected to enhance MREIT’s portfolio and deliver stronger, more competitive returns to investors.
Megaworld will subscribe to newly created MREIT shares at a price not lower than P14.39 per share—a premium to MREIT’s 30-day volume weighted average price. The final terms, including asset valuation and swap price, will be disclosed once confirmed and approved by regulators.
As an initial step, Megaworld subscribed to 750 million shares—25 percent of the proposed increase—at par value of P1.00 per share, paying P187.5 million in cash as required by law.
MREIT said the capital hike and asset infusion are part of its strategy to expand its property footprint and secure long-term income growth.
Subject to regulatory approval, the share swap is expected to further align MREIT’s growth trajectory with that of its sponsor, strengthening its position in the country’s growing REIT market.
