Megaworld Corp. plans to infuse retail assets into its real estate investment trust MREIT Inc. by the second half of 2026 as part of an aggressive expansion plan to reach 1 million square meters (sq. m.) of leasable space by 2027.
MREIT chairman Kevin Andrew Tan told reporters MREIT would “inject malls next year.”
The initial infusion is expected to include 70,000 sq. m. of retail assets, according to MREIT and Megaworld investor relations head Andy dela Cruz in a separate interview.
“We are currently reviewing all the malls under Megaworld because the goal is really to infuse everything under MREIT,” Dela Cruz said.
Before the mall infusion, Megaworld will inject 10 office assets valued at a minimum of P15 billion into MREIT. These assets will push MREIT to an expected 500,000 sq. m. of leasable space by the end of 2025.
The asset infusions will be executed through a property-for-share swap. MREIT has secured regulatory approval to increase its capital stock to P8 billion from P5 billion, which will fund the expansion by allowing the issuance of new shares in exchange for assets.
MREIT’s goal is to achieve 600,000 sq. m. of leasable space by 2026 and the ultimate goal of 1 million sq. m. by 2027. Most of MREIT’s current assets are office buildings in key locations across the Philippines.
In its residential business, Megaworld will launch one more estate development this year, bringing its total to 37.
Earlier this year, the company launched Nascala, a 116-hectare beachside township in Nasugbu, Batangas.
The property firm could exceed its planned P20 billion in residential launches for 2025 depending on market demand, as the company has already launched P20 billion worth of projects during the first nine months of the year, Dela Cruz said.
Tan described the company’s 2025 performance as strong, buoyed by robust demand across business lines.
“We had a very good start of the year and I think the demand continues to be strong,” Tan said.
“Of course, there’s a lot of wait and see among our clients. But other segments like retail, offices, we have a record-breaking year in terms of these transactions,” he said.
