MREIT Inc., the real estate investment trust of Megaworld Corp., is set to execute its largest asset expansion to date with a ₱27-billion property-for-share swap. Under the agreement, MREIT will acquire prime commercial, retail, and hospitality properties from Megaworld, Travellers International Hotel Group, and Southwoods Mall Inc. at a subscription price of ₱16.50 per share, marking an 18 percent premium over its recent 30-day average price.
This fifth major asset infusion will add 303,900 square meters of gross leasable area, expanding MREIT’s total portfolio to 950,000 square meters. The deal brings the company remarkably close to its 2027 goal of reaching one million square meters of total leasable space. Once approved by the Securities and Exchange Commission, the transaction will elevate MREIT’s total assets under management to ₱122 billion.
Retail properties make up the largest portion of the acquisition, comprising 53 percent of the deal with five prominent shopping centers: Festive Walk Mall in Iloilo, Lucky Chinatown Mall in Manila, Venice Grand Canal Mall and Eastwood Mall in Metro Manila, and Southwoods Mall in Laguna. The transaction also marks MREIT’s entry into the hotel sector through the addition of the 737-room Holiday Inn Express Manila Newport City, which accounts for 9 percent of the infusion. The remaining 38 percent consists of six prime office buildings across key business hubs in Taguig, Pasig, Quezon City, and Newport City.
The newly added assets boast a high combined occupancy rate of 91 percent and a weighted average lease duration of 5.3 years. Following an earlier ₱16.2-billion asset transfer completed in the first quarter, this deal brings MREIT’s total property acquisitions for the year to ₱43 billion.
