The Securities and Exchange Commission (SEC) has approved MREIT Inc.’s plan to raise its authorized capital stock to P8 billion from P5 billion, the real estate investment trust company of Megaworld Corp. said in a disclosure to the stock exchange.
The approval allows MREIT to proceed with its next round of property infusions.
“With the approval of our ACS increase, we are now structurally positioned to pursue the next phase of our growth strategy,” said MREIT Inc. president and chief executive Jose Arnulfo Batac.
“This milestone allows us to prepare for fresh acquisitions that will further scale our portfolio and support long-term value creation for our shareholders,” said Batac.
MREIT is evaluating 10 office properties for potential infusion. These properties, nine in McKinley Hill and one in Eastwood City, have about 198,500 square meters (sq. m.) of gross leasable area.
If completed, the infusion would expand MREIT’s portfolio by about 41 percent to 680,000 sq. m. from the existing 482,000 sq. m. The company also expects its leasable portfolio to reach 600,000 sq. m. by the end of this year and 1 million sq. m. by 2027.
MREIT’s portfolio includes office assets located in Megaworld’s townships such as Eastwood City, McKinley Hill, McKinley West, Iloilo Business Park and Davao Park District. Megaworld, MREIT’s sponsor, will still have around 900,000 sq, m. of office and retail assets not yet part of MREIT, ensuring a strong runway for future growth rounds.
The company is also preparing for the inclusion of select retail assets to diversify its portfolio. This forms part of the group’s broader strategy to expand its income streams and enhance long-term stability, allowing MREIT investors to benefit from Megaworld’s strong mall business, backed by high occupancy and sustained growth in foot traffic.
MREIT said it remains focused on pursuing accretive acquisitions while maintaining strong dividend payouts.
