MREIT Inc., a real estate investment trust, is channeling P1.26 billion into township expansion projects across Cebu, Palawan, Bacolod, and Pasig City, as sponsor Megaworld Corp. moves to recycle capital from a recent share sale into fresh property developments and debt reduction.
Megaworld, the listed property development arm of billionaire Andrew Tan, said the proceeds came from the sale of 91.16 million MREIT shares at an average price of P13.90 apiece, generating net proceeds of about P1.264 billion. Under REIT regulations, sponsors are required to reinvest proceeds from REIT-related share sales into Philippine real estate or infrastructure projects within two years.
The company said the funds will support the development of malls, office towers, and mixed-use components inside key Megaworld townships, reinforcing its strategy of deepening recurring income assets outside Metro Manila.
Part of the proceeds will also be used to repay loans tied to projects in Iloilo, Cavite, Taguig, and Pasay, indicating a parallel effort to keep leverage manageable while sustaining expansion.
The reinvestment plan highlights how developers are increasingly using REIT platforms not only to monetize mature assets, but also to fund the next wave of township growth. For Megaworld, the strategy effectively creates a capital recycling loop: stabilized office assets are injected into MREIT, proceeds are raised through the market, and capital is redeployed into new developments expected to generate future recurring revenues.
MREIT remains among the country’s largest listed real estate investment trusts, with a market capitalization of about P67.7 billion. Public ownership stands at 38.86 percent.
Megaworld clarified that none of the proceeds will be used for infrastructure ventures outside its township developments, signaling continued focus on integrated urban communities as the company navigates a more selective property market environment.
The planned investments also underscore the growing importance of regional growth centers such as Cebu, Bacolod, and Palawan in the expansion strategies of major Philippine developers.
