Mreit Inc., the real estate investment trust of Megaworld Corp., said it will acquire six office properties valued at P13.15 billion from its sponsor firm.
Upon Securities and Exchange Commission approval, the acquisition will increase Mreit’s portfolio of 157,000 square meters to 482,000 square meters.
The acquisition includes Two West Campus, Ten West Campus and One Le Grand in McKinley West in Taguig; One Fintech and Two Fintech in Iloilo Business Park; and the Davao Finance Center in Davao Park District.
The properties will be exchanged for 926.16 million Mreit’s secondary shares at P14.20 apiece, a 10 percent premium over Mreit’s closing price of P12.94 per share on 10 May.
The purchase price is based on appraisal reports validated by a third-party fairness opinion which were presented to and approved by the company’s RPT committee and its board.
“The acquisition of these properties moves us closer to our target portfolio of 500,000 square meters by the end of 2024. This transaction not only supports the sustained growth of Mreit but is also dividend accretive to our shareholders. We are immediately working on the next set of acquisitions to reach our target assets under management before the year concludes,” Kevin Andrew L. Tan, president and CEO, said.
Mreit also declared cash dividends of P0.246 per share to its shareholders based on its distributable income in the first quarter 2024.
The dividends are payable on 14 June to shareholders on record as of 24 May.
Annualized, this brings Mreit’s dividend yield to 7.6 percent, as of the closing share price of P12.94 per share on 10 May 2024.
Mreit’s portfolio extends over 18 office properties in four Megaworld townships.
