MREIT, Inc. has received approval from the Securities and Exchange Commission (SEC) to acquire six prime office properties valued at P13.15 billion.
The real estate investment trust (REIT) arm of Megaworld Corporation said the acquisition will add 156,631 square meters of gross leasable area (GLA) to MREIT’s portfolio, increasing its total GLA by 48 percent to 482,055 square meters.
The properties are located in Megaworld’s townships: Two West Campus, Ten West Campus, and One Le Grand in McKinley West; One Fintech and Two Fintech in Iloilo Business Park; and the Davao Finance Center in Davao Park District.
In exchange for these assets, MREIT will issue 926.1 million primary shares at a price of P14.20 apiece, based on independent appraisals and a third-party fairness opinion.
Kevin L. Tan, MREIT, Inc. president and chief executive officer, stated, “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.”
He added that these income-generating assets are expected to contribute to MREIT’s income by the fourth quarter of this year, benefiting shareholders.
With this acquisition, MREIT will have a total of 24 office properties in five Megaworld townships: Eastwood City, McKinley Hill, McKinley West, Iloilo Business Park, and Davao Park District.
This move supports MREIT’s strategy of acquiring valuable assets in key growth areas, providing stability and long-term value, the company said.