MREIT Inc., the real estate investment trust of township developer Megaworld Corp., has secured clearance from the Securities and Exchange Commission for it to acquire six prime, PEZA-accredited office properties valued at P13.15 billion.
The acquisition will bolster MREIT’s portfolio by 156,631 square meters, increasing its total gross leasable area by 48 percent to 482,055 square meters. The deal includes notable properties such as Two West Campus, Ten West Campus, and One Le Grand in McKinley West, as well as One Fintech and Two Fintech in Iloilo Business Park, and the Davao Finance Center in Davao Park District.
MREIT will issue 926.2 million new shares at a price of P14.20 a share, based on independent appraisals and a third-party fairness opinion approved by the company’s Related Party Transactions Committee and Board of Directors.
“This acquisition is a major milestone in our mission to drive MREIT’s growth and solidify its position as one of the leading REITs in the Philippines,” stated Kevin L. Tan, president and chief executive officer of MREIT. “These high-quality, income-generating assets will start contributing to MREIT’s income by the fourth quarter of this year, further enhancing value for our shareholders and ensuring sustained growth in dividends,” he added.
The acquisition will expand MREIT’s portfolio to 24 prime office properties strategically located in five Megaworld premier townships: Eastwood City, McKinley Hill, McKinley West, Iloilo Business Park, and Davao Park District. The strategy reinforces MREIT’s commitment to acquiring prime assets in key growth areas, offering both stability and long-term value.
The expanded portfolio positions MREIT to leverage its influence in the office leasing market further, while also providing shareholders with enhanced returns through a diverse array of high-quality assets. The strategic growth underscores MREIT’s dedication to maximizing shareholder value and contributing to the robust development of the real estate sector in the Philippines.
