MREIT Inc., the real estate investment trust (REIT) company of Megaworld Corp., received the Securities and Exchange Commission’s (SEC) approval to acquire six prime office properties for P13.15 billion in a property-for-share swap deal with its parent company.
This will expand MREIT’s portfolio by 156,631 square meters (sq. m.), increasing its total gross leasable area by 48 percent to 482,055 sq, m., the company said in a disclosure to the stock exchange Friday.
Under the plan, MREIT will issue 926,162 million primary shares at P14.20 per share to Megaworld in exchange for the six office properties. The valuation was based on independent appraisals and a third-party fairness opinion approved by the company’s related party transaction committee and board of directors.
This will increase Megaworld’s stake in MREIT to 63.44 percent from 51.33 percent.
The properties include 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.
“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,” said MREIT president and chief executive Kevin Tan.
“These high-quality, income-generating assets will start 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 said.
With the latest acquisition MREIT’s portfolio will grow to 24 prime office properties in five Megaworld premier townships: Eastwood City, McKinley Hill, McKinley West, Iloilo Business Park and Davao Park District.
This also supports MREIT’s investment plan to reach 500,000 sq. m. of gross leasable areas by end-2024. The expanded portfolio will allow MREIT to strengthen its position in the office leasing market, while providing shareholders with enhanced returns through diversified, high-quality assets. MREIT is aiming to be the largest office REIT in the Southeast Asian region.
