Mreit Inc., the real estate investment trust of property developer Megaworld Corp., needs more time to evaluate the properties it looks to acquire in Taguig, Davao and Iloilo by another five months.
The new closing date of 31 May 2024 marks exactly a year from when Megaworld first signed a memorandum of agreement.
“By mutual agreement of the parties, and in accordance with Paragraphs B and F of the MOU, the conduct of the company’s financial, legal and technical due diligence and the execution of the definitive agreements is mutually extended to 31 May 2024,” Mreit said. It earlier targeted the third quarter this year as closing date.
The proposed acquisition include Two West Campus (9,500 square meters) and Ten West Campus (36,400 square meters) in McKinley Hill, Science Hub Tower 3 (20,500 square meters) and Science Hub Tower 4 (20,700 square meters) in McKinley West, One Fintech Place (18,200 square meters) and Two Fintech Place (18,100 square meters) in Iloilo Business Park and Davao Finance Center (27,100 square meters) in Davao Park District.
In aggregate, these assets generated P1.2 billion rental income in 2022.
“These properties boast high average occupancy rate of 94 percent and quality tenants, marking a significant step towards our commitment to deliver sustained growth and value to our investors. Over the coming weeks, our team will work alongside our sponsor Megaworld Corporation to conduct comprehensive financial, legal, and technical due diligence to ensure the viability of the assets with a goal to execute definite agreements within the third quarter of the year. We look forward to finalizing MREIT’s next set of acquisitions soon,” Kevin Andrew L. Tan, president and CEO, earlier said.
When concluded, its portfolio will grow to 475,500 square meters, higher by 46 percent from the current 325,000 square meters and closer to target assets under management by 2024 of 500,000 square meters.
