Megaworld’s MREIT To Acquire Six Prime Property Assets Worth PHP13.15 Billion

MREIT, Inc., the Real Estate Investment Trust (REIT) arm of township developer Megaworld Corporation, announced that it has received approval from the Securities and Exchange Commission (SEC) to acquire six prime office properties, all accredited by the Philippine Economic Zone Authority (PEZA), with a combined value of PHP13.15 billion.

The acquisition includes Two West Campus, Ten West Campus, and One LeGrand in McKinley West; One Fintech and Two Fintech in Iloilo Business Park; and Davao Finance Center in Davao Park District. I Photo: Iloilo Business Park Sales and Marketing Facebook

The acquisition includes Two West Campus, Ten West Campus, and One LeGrand in McKinley West; One Fintech and Two Fintech in Iloilo Business Park; and Davao Finance Center in Davao Park District.

Kevin L. Tan, President and CEO of MREIT, Inc., stated, “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.”

To complete the acquisition, MREIT will issue 926,162,000 primary shares at a share price of PHP14.20 per share, based on independent appraisals and third-party fairness opinions, as approved by the company’s Related Party Transactions (RPT) Committee and Board of Directors.

The acquisition will expand MREIT’s portfolio by 156,631 sqm, increasing its total gross leasable area by 48% to 482,055 sqm, as disclosed to the Philippine Stock Exchange (PSE).

“These high-quality, income-generating assets will begin contributing to MREIT’s income by the fourth quarter of this year, further enhancing value for our shareholders and ensuring sustained growth in dividends,” Tan added.

With this acquisition, MREIT's portfolio will grow to 24 prime office properties strategically located in five premier Megaworld townships, including Eastwood City, McKinley Hill, McKinley West, Iloilo Business Park, and now, Davao Park District.

This expansion aligns with MREIT’s strategy of acquiring prime assets in key growth areas that offer stability and long-term value to the company.

Tan emphasized that the expanded portfolio will enable MREIT to further strengthen its position in the office leasing market while providing shareholders with enhanced returns through a diversified portfolio of high-quality assets.