Property giant Megaworld Corp. has raised P5.6 billion through a series of MREIT Inc. block sales between April and July, providing fresh capital to bankroll the next wave of township developments while expanding the listed real estate investment trust’s portfolio.
The proceeds will be reinvested into recurring income-generating projects across
Megaworld’s integrated townships as the company prepares the fifth asset infusion into MREIT.
The upcoming “Wave 5” infusion will add 303,500 square meters of gross leasable area, boosting MREIT’s portfolio to more than 950,000 square meters and putting it within striking distance of its one-million-square-meter target ahead of schedule.
More importantly, the transaction will reshape MREIT’s asset mix. Once dominated by office buildings, the REIT’s portfolio will diversify to about 77 percent office, 20 percent mall, and 3 percent hotel assets, broadening its recurring revenue streams.
“Our townships are designed to grow holistically. Through MREIT, we are able to bring that value cycle forward, allowing capital from stabilized assets to help build the next generation of developments and expand our recurring income platform across our townships,” Megaworld president and chief executive officer Lourdes Gutierrez-Alfonso said.
The strategy underscores the growing importance of REITs as capital recycling vehicles for Philippine property developers. By selling mature, income-producing assets to MREIT, Megaworld unlocks capital that can be reinvested into new offices, malls, hotels, and mixed-use developments without relying heavily on additional debt.
The fresh funding will support projects in growth centers such as Paragua Coastown in Palawan, The Upper East in Bacolod, Capital Town in Pampanga, The Mactan Newtown in Cebu, as well as developments in Iloilo, Cavite, and ArcoVia City in Pasig.
“MREIT’s next phase of growth goes beyond scale,” MREIT Chairman Kevin L. Tan said, noting that a more diversified portfolio gives investors broader exposure to recurring income generated across Megaworld’s integrated townships while strengthening the REIT’s long-term growth prospects.
