MREIT Inc., the real estate investment trust of Megaworld Corp., has secured Securities and Exchange Commission approval for its P27-billion Wave 5 property-for-share swap, clearing the way for its largest asset acquisition and pushing assets under management to about P122 billion.
The approval, secured within the third quarter, means the newly acquired properties will contribute income retroactively from July 1, giving shareholders an immediate benefit from a transaction designed to lift dividends per share.
Wave 5 will add about 303,900 square meters of gross leasable area, bringing MREIT’s total portfolio to more than 950,000 square meters.
Combined with the P16.2-billion Wave 4 transaction completed in the first quarter, MREIT’s 2026 asset infusions will exceed P43 billion.
The latest deal also significantly diversifies MREIT’s portfolio. Its holdings will shift from more than 95 percent office by GLA to roughly 77 percent office, 20 percent retail and 3 percent hotel, while expanding its presence from five to nine Megaworld townships.
Wave 5 includes five lifestyle malls totaling about 160,200 square meters, the 737-room Holiday Inn Express Manila Newport City, and six office properties with combined GLA of about 117,200 square meters.
The assets have a blended occupancy rate of 91 percent and weighted average lease expiry of 5.3 years, providing recurring income from office, retail and hospitality operations.
The portfolio was valued at a blended effective cap rate of 7.8 percent. MREIT will issue shares at P16.50 each, an 18.6 percent premium to its 30-day volume-weighted average price before board approval.
MREIT President and CEO Jose Arnulfo Batac said the deal demonstrates the company’s ability to convert Megaworld’s property pipeline into shareholder value.
The company is now preparing Wave 6, which could include select Uptown Bonifacio assets. MREIT expects its portfolio to exceed 1 million square meters of GLA by 2027.
