MREIT Inc., the real estate investment trust company of Megaworld Corp., said Wednesday it plans to acquire retail assets to diversify its portfolio.
MREIT president and chief executive Kevin Andrew Tan said during the annual stockholders’ meeting the company would acquire retail assets owned by its parent firm Megaworld starting this year.
Tan said the company’s plan to diversify its assets would provide MREIT shareholders with exposure to the strong performance of the retail sector.
This will also enhance the company’s overall resilience and growth prospects.
“In the long term, we are also studying other property types within the Megaworld’s portfolio that will bring value to MREIT. By broadening our investment horizon into new asset types this will ensure MREIT will have a balanced and diversified portfolio,” Tan said.
Megaworld had 517,000 square meters of retail space as of end-2023.
Meanwhile, MREIT announced plans early this year to acquire six office buildings from Megaworld with 157,00 sq. m. of leasable space worth P13.15 billion.
This will be done through a property-for-share swap deal.
Office properties to be acquired by MREIT 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.
Megaworld will receive 926,162,000 MREIT primary shares at P14.20 apiece in exchange for the buildings.
The planned acquisition will increase MREIT’s portfolio to 428,000 sq. m., bringing the company closer to meeting its target 500,000 sq. m. of leasable space by end 2024 and 1 million sq. m. by 2030.
“This acquisition, not only enhances our portfolio but also strengthens our position in the market, allowing us to provide even more high-quality spaces to our tenants and to sustain our revenue growth,” Tan said.
The deal is subject for approval by the Securities and Exchange Commission.
MREIT’s portfolio covers 18 office properties located in four Megaworld premier townships, namely 1800 Eastwood Avenue, 1880 Eastwood Avenue, and E-Commerce Plaza in Eastwood City; One World Square, Two World Square, Three World Square, 8/10 Upper McKinley, 18/20 Upper McKinley and World Finance Plaza in McKinley Hill.
The share price of MREIT was unchanged at P12.70 Wednesday.