Megaworld Corp.’s real estate investment trust (REIT), MREIT Inc., is poised to diversify its portfolio by incorporating retail spaces into its assets starting next year. This shift comes as MREIT aims to expand its total leasable area to one million square meters by 2030, with plans for retail assets included in the acquisition.
Andy dela Cruz, MREIT investor relations officer, outlined the company’s strategy on Investor Day, Wednesday, at the Philippine Stock Exchange. For 2024, MREIT targets adding 5,000 square meters of new space, which, until now, has been predominantly office properties. Retail assets will also be part of the company’s upcoming expansion.
“The goal is to reach a million square meters by 2030, and that can include more than just office assets. For this year, we are targeting 500,000 square meters, with only 20,000 square meters remaining to meet that target,” said dela Cruz. “In our next round of acquisitions, we hope to include a retail project, which will be beneficial for MREIT shareholders.”
Kevin Tan, president of MREIT, highlighted the company’s positive outlook, citing the strong recovery in tenant sales, rental rates, and occupancy levels at its parent company’s Megaworld Lifestyle Malls.
“By expanding into new asset types, we are ensuring a balanced and diversified portfolio that can adapt to various market conditions,” Tan said. He also said the strategic move offers shareholders exposure to the thriving retail sector, thereby bolstering MREIT’s growth and resilience.
MREIT is confident of its long-term growth prospects, with new properties available through Megaworld, its sponsor. The pipeline of potential acquisitions will help solidify MREIT’s position as a market leader by 2030.
