Philippines: MREIT Secures SEC Nod for P13.15B Property Acquisition

MREIT, Inc., the real estate investment trust of Megaworld Corporation, has received approval from the Securities and Exchange Commission (SEC) to acquire six office properties valued at P13.15 billion.

The acquisition, which includes PEZA-accredited properties, will add 156,631 square meters to MREIT’s portfolio, increasing its total gross leasable area by 48% to 482,055 square meters.

The properties are located in key business districts, including Two West Campus, Ten West Campus, and One Le Grand in McKinley West; One Fintech and Two Fintech in Iloilo Business Park; and Davao Finance Center in Davao Park District.

To finance the acquisition, MREIT will issue 926.16 million primary shares at P14.20 per share, based on independent appraisals and a third-party fairness opinion approved by the company’s board and related party transaction committee.

“This acquisition marks a significant step in MREIT’s growth strategy, further strengthening our position as one of the leading REITs in the Philippines,” said MREIT President and CEO Kevin L. Tan.

“These new assets will begin contributing to our income by the fourth quarter, enhancing shareholder value and supporting dividend growth,” Tan added.

The expanded portfolio will bring MREIT’s total number of properties to 24, spread across five of Megaworld’s townships: Eastwood City, McKinley Hill, McKinley West, Iloilo Business Park, and Davao Park District.

This acquisition aligns with MREIT’s strategy of securing high-quality assets in growth areas to ensure stability and long-term value for shareholders.

Business News Asia

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