The Securities and Exchange Commission has approved the increase in the authorized capital stock of MREIT Inc., the real estate investment trust of township developer Megaworld Corp., paving the way for the expansion of its property portfolio through another asset-for-share swap.

In a disclosure to the Philippine Stock Exchange, MREIT said the SEC greenlighted the increase in its authorized capital stock to ₱8 billion from ₱5 billion. 
The SEC approval allows MREIT to move forward with preparations for its next wave of property infusions.

“This approval strengthens MREIT’s capital framework and allows the company to begin the process of issuing new shares for future acquisitions,” MREIT said in the statement.

MREIT has disclosed it is evaluating 10 office properties—nine in McKinley Hill and one in Eastwood City—valued at ₱20 billion, comprising approximately 198,500 square meters of gross leasable area (GLA) for potential infusion.

If completed, the infusion would expand MREIT’s portfolio by roughly 41 percent, from its existing 482,000 square meters to about 680,000 square meters.

Megaworld, MREIT’s sponsor, still holds around 900,000 square meters of office and retail assets not yet included in MREIT, ensuring a strong runway for future growth. Following this next round of office acquisitions,

MREIT plans to begin preparations for the inclusion of select retail assets to support portfolio diversification. The move is expected to allow MREIT investors to benefit from Megaworld’s mall business, which the company noted is backed by high occupancy and sustained growth in foot traffic.

“With the approval of our ACS increase, we are now structurally positioned to pursue the next phase of our growth strategy,” said Jose Arnulfo C. Batac, MREIT President and CEO.

“This milestone allows us to prepare for fresh acquisitions that will further scale our portfolio and support long-term value creation for our shareholders,” he added.

MREIT’s current portfolio consists of office assets located within Megaworld townships, including Eastwood City, McKinley Hill, McKinley West, Iloilo Business Park, and Davao Park District.

The company reiterated its focus on delivering stable dividends and accretive acquisitions as it progresses toward its target of one million square meters of GLA by 2027.