Andrew Tan-led top township developer Megaworld Corp. has raised ₱945 million from the sale of shares of its real estate investment trust (REIT), MREIT Inc., to reduce its stake in the subsidiary and pave the way for a fresh asset infusion in exchange for new shares.

In a disclosure to the Philippine Stock Exchange (PSE) on Monday, March 9, Megaworld said it sold 70 million MREIT shares at ₱13.50 per share under a block sale transaction at the bourse last March 6. BDO Securities Corp. acted as broker for the transaction.

The proceeds from the block sale will be settled on Tuesday, March 10, and the firm said it will submit the required reinvestment plan detailing the use of proceeds from the block sale transaction.

Last December, Megaworld sold 98 million MREIT shares, also at a price of ₱13.50 per share, equivalent to ₱1.32 billion, under a block sale transaction.

Stock analysts said Megaworld is reducing its stake in MREIT in preparation for its latest batch of asset-for-share swaps worth ₱16 billion.

Reducing its stake in MREIT before the swap, which will increase its interest in MREIT, will allow MREIT’s public float to remain compliant with the minimum 33-percent requirement for REITs.

Last Friday’s block sale will increase MREIT’s public float by 1.88 percentage points (ppts) from the current 44.96 percent to 46.84 percent.

COL Financial Group Inc. research analyst Rachelle Biacora said MREIT management is guiding for about five-percent dividend growth from this year’s first asset infusion (fourth wave), with additional upside potentially coming from the second infusion (fifth wave) later in the year.

Megaworld has finalized the infusion of ₱16.22 billion worth of office assets at McKinley Hill in Taguig City, into MREIT through its latest batch of property-for-share swaps.

The infusion of nine Megaworld grade A office buildings into MREIT will be done through a property-for-share swap transaction.

The assets to be infused are Science Hub Towers 1, 3, and 4; 8 Campus Place Buildings A, B, and C; One Campus Place Buildings A and B; and South East Asian Campus (SEAC)—all grade A office properties located within Philippine Economic Zone Authority (PEZA)-registered zones at McKinley Hill, one of Metro Manila’s established business districts.

Several of these assets, including 8 Campus Place Buildings A and B and SEAC, are Leadership in Energy and Environmental Design (LEED)-certified, underscoring their alignment with internationally recognized sustainability standards.

The infusion will add 165,477 square meters (sqm) of gross leasable area (GLA) to MREIT’s portfolio, bringing its total office GLA to 646,891 sqm upon completion.

Following this transaction, MREIT intends to pursue another round of asset infusions within 2026, which is expected to increase its portfolio to approximately 750,000 sqm of GLA.

As previously disclosed, the next tranche is expected to include select mall assets, further diversifying MREIT’s income base.

These planned infusions form part of MREIT’s growth strategy to expand its portfolio with premium office assets and lifestyle malls, supporting its long-term target of one million sqm of GLA by 2027.

The swap called for the subscription by Megaworld to 996.87 million shares in MREIT and payment through the transfer of nine grade A office buildings plus a cash payment of ₱187.5 million.