Property giant Megaworld Corp., the real estate arm of billionaire Andrew Tan, plans to reinvest more than P661 million raised from recent sales of shares in its listed real estate investment trust, MREIT Inc., into expanding key township projects, underscoring its strategy of recycling capital to fund growth.
In a reinvestment plan filed with regulators, Megaworld said proceeds from two block sales of MREIT shares in July—worth about P515 million and P147 million, respectively—will be deployed across several flagship developments beginning in the third quarter of this year through the second quarter of 2027.
The largest share of the funds will support The Mactan Newtown in Cebu and ArcoVia City in Pasig, while part of the proceeds will also be used to repay loans tied to developments in Iloilo Business Park and Maple Grove in Cavite.
The disclosure illustrates how property developers use REITs not only to unlock the value of mature, income-generating assets but also to recycle capital into new projects without significantly increasing leverage.
Under Philippine REIT rules, sponsors are required to reinvest proceeds from share sales into eligible real estate or infrastructure projects within a prescribed period, ensuring that capital raised from monetizing stabilized assets is channeled back into economic development.
Megaworld remains MREIT’s principal sponsor after the transactions.
The company said The Mactan Newtown is about 80 percent complete, while ArcoVia City is 78 percent complete. The Iloilo Business Park and Maple Grove developments are each roughly 77 percent complete.
The reinvestment plan covers proceeds from block sales executed on July 10 and July 14, which together generated approximately P661.6 million.
For Megaworld, the move reinforces a familiar playbook: monetize completed office assets through MREIT, recycle the capital into expanding its township pipeline, and repeat the cycle as new developments mature. The strategy allows the property giant to keep growing while maintaining financial flexibility in an environment where developers continue to balance expansion with disciplined capital management.
