MREIT Inc., the real estate investment trust company owned by Megaworld Corp., said Tuesday it will acquire four prime office towers next month to boost its leasing portfolio and increase shareholder value.
MREIT said in a disclosure to the stock exchange it was finalizing the purchase of Two Techno Place, Three Techno Place and One Global Center in Iloilo Business Park and World Finance Plaza in McKinley Hill in Fort Bonifacio, Taguig City.
The office towers have a combined gross leasable area of 55,700 square meters and an average occupancy rate of 99 percent. The company did not disclose the value of the transaction but said the acquisitions would be funded through debt.
Once completed, the infusion will increase MREIT’s GLA by 25 percent to 280,131 sq. m. from 224,431 sq. m. across 10 office, hotel and retail properties.
“We remain steadfast in our vision of making MREIT one of the largest office REITs not only in the Philippines, but in the Southeast Asian region as well, and this acquisition is but the first step to realizing the significant growth potential of the company,” MREIT president and chief executive Kevin Andrew Tan said.
“We look to close the deal by December of this year and expect that these assets will start to contribute revenues to MREIT starting January 2022,” Tan said.
The properties to be acquired have stable tenant base, which are primarily composed of business process outsourcing companies.
The REIT firm earlier announced plans to increase its GLA by 100,000 sq. m. or equivalent to roughly 45 percent of the company’s total portfolio before the end of 2022.
“The quality of growth is also important to us. That is why we are very deliberate in choosing which properties to acquire. This way, we not only ensure the sustainability of our income generation, but also provide a clear path towards capital appreciation,” Tan said.
MREIT was listed in the Philippine Stock Exchange in October this year.
The share price of MREIT rose 0.33 percent Tuesday to close at P18.30.