Megaworld Corp., the property development arm of billionaire Andrew Tan, raised fresh capital after selling a portion of its holdings in real estate investment trust, MREIT Inc., through a block sale that raised P945 million.
The sale signaling continued portfolio recycling among Philippine property developers tapping real estate investment trusts.
Megaworld disclosed that it sold 70 million common shares of MREIT at P13.50 per share on March 6. The transaction will be settled on March 10.
The shares were sold via a negotiated block trade, with BDO Securities acting as broker for the deal.
While relatively modest in size, the move reflects a broader strategy among property groups to periodically monetize REIT holdings while maintaining overall control. Such transactions allow developers to unlock capital tied up in stabilized income generating assets while continuing to benefit from recurring rental streams through their remaining stakes.
For Megaworld, MREIT remains a key platform for recycling mature office assets into a yield driven investment vehicle. Since its listing, the REIT has steadily expanded its portfolio of office properties largely sourced from Megaworld’s township developments.
The latest block sale suggests Megaworld is once again tapping the liquidity of the REIT market to support future investments.
The listed property developer has set aside P65 billion to expand its township projects outside Metro Manila this year
Megaworld said it will submit a reinvestment plan detailing how the proceeds will be used, in line with regulatory requirements governing asset recycling among REIT sponsors.
Investors often watch these reinvestment disclosures closely. They can offer clues about where developers plan to deploy fresh capital, whether toward new office towers, township expansion, or additional income generating assets that may eventually be injected into the REIT.
For now, the sale underscores the quiet but steady role REITs are playing in reshaping how Philippine property giants fund growth.
