Top township developer Megaworld Corp. is preparing for another infusion of assets into MREIT Inc. later this year by unloading ₱1.17-billion worth of the real estate investment trust’s (REIT) shares.

In a disclosure to the Philippine Stock Exchange (PSE), Megaworld said it sold 84.8 million common shares of MREIT—about 2.3 percent of MREIT’s outstanding capital—at an offer price of ₱13.82 per share under a block sale transaction last July 25, 2025. The proceeds from the block sale shall be settled on July 29, 2025.

MREIT currently has a free float level of 35.52 percent, just a little above the minimum public ownership requirement of 33 percent for REITs.

To be able to infuse more assets into MREIT, Megaworld will need to sell more MREIT shares so it can acquire new shares through a property-for-share swap and still remain compliant with the minimum public float requirement.

“We believe the transaction was made to pave way for the upcoming asset infusion to MREIT in the second half of 2025,” said Unicapital Securities Inc. Head of Research Wendy Estacio-Cruz.

She noted that, “The company remains committed to its goal of reaching one million square meters (sqm) of gross leasable area (GLA) by 2030, with plans to infuse around 100,000 sqm of new assets each year, targeting around 600,000 sqm of GLA by the end of 2025.”

Estacio said these future infusions will include a mix of property types, such as retail and hotel, as Megaworld has a robust project pipeline and fully owned retail and hotel developments, which may serve as potential acquisitions for MREIT moving forward.

“Its upcoming asset infusions are expected to follow a target mix of 80-percent office and 20-percent retail properties.

“Although the final composition is still being finalized, this indicative ratio highlights the company’s strategy to maintain a primary focus on office assets while gradually diversifying into select retail assets to support portfolio diversification,” she said.

In October 2024, the Securities and Exchange Commission (SEC) approved the acquisition by MREIT of six prime Philippine Economic Zone Authority (PEZA)-accredited office properties worth ₱13.15 billion from Megaworld to expand its portfolio by 156,631 sqm, increasing its total GLA by 48 percent to 482,055 sqm.

The properties included in the acquisition are 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.

In exchange, MREIT issued 926.16 million primary shares at ₱14.20 per share, resulting in an increase of control and ownership of Megaworld in MREIT from 51.33 percent to 63.44 percent.

“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 Officer (CEO) Kevin L. Tan.

He added that, “These high-quality, income-generating assets will start contributing to MREIT’s income by the fourth quarter of [2024], further enhancing value for our shareholders and ensuring sustained growth in dividends.”

The acquisition will expand MREIT’s portfolio to 24 prime office properties strategically located in five Megaworld premier townships: Eastwood City, McKinley Hill, McKinley West, Iloilo Business Park, and Davao Park District.

This reinforces MREIT’s strategy of acquiring prime assets in key growth areas that offer stability and long-term value to the company.

The transaction represents the third wave of acquisitions in accordance with the investment plan, geared towards realizing the vision of making MREIT the largest office REIT in Southeast Asia.