Megaworld Corp. will begin transferring about 70,000 sqm of mall space to its REIT unit, Mreit Inc., next year, with the infusion to be done in two batches that may include a property-for-share swap.
The company aims to add 250,000 sqm more—mainly malls and offices—as part of its plan to reach 1 million sqm in Mreit’s portfolio by 2027.
Megaworld is reviewing all its malls for eventual transfer and expects to operate 3 million sqm of active properties by 2030. Next year’s infusion will include 10 office assets and several malls, which the company expects to boost income and investor dividends.
Mreit recently secured approval to raise its authorized capital to P8 billion, enabling new share issuance. It is evaluating 198,500 sqm of office assets for potential infusion, which would expand its portfolio by 41 percent to 680,000 sqm. Megaworld will still retain about 900,000 sqm of assets outside Mreit.
