MREIT Inc. and its parent company, township developer Megaworld Corp., approved a ₱27 billion property-for-share swap, the largest domestic real estate investment trust asset infusion of the year as the fund expands into commercial retail and hospitality assets.

MREIT said in a disclosure to the bourse that the transaction, labeled as Wave 5, is the fifth round of asset transfers from Megaworld to the real estate investment trust unit.

Pending regulatory approval from the Securities and Exchange Commission (SEC), the deal will elevate MREIT’s total assets under management to ₱122 billion.

The latest transaction brings MREIT’s total asset additions in 2026 to more than ₱43 billion, following a ₱16.2 billion infusion executed during the first quarter of the year.

Under the terms of the agreement, Wave 5 will add 303,900 square meters of gross leasable area to the portfolio, making it MREIT’s largest single expansion by transaction value and floor space.

Upon completion, the trust’s total portfolio will exceed 950,000 square meters, positioning it near its long-term target of one million square meters originally slated for 2027.

The acquisition significantly alters MREIT’s revenue base, transforming the vehicle from an office-dominated trust into a multi-asset real estate fund. Commercial office space will drop from over 95 percent of gross leasable area to roughly 77 percent. Retail properties will represent 20 percent of the portfolio, while hospitality assets will account for the remaining 3 percent.

The geographical reach of the real estate trust will expand from five to nine Megaworld townships in the Philippines. The retail portion comprises 160,200 square meters across five commercial malls, representing 53 percent of the deal's total area. The properties include Festive Walk Mall in Iloilo City, Lucky Chinatown Mall in Manila, Venice Grand Canal Mall in Taguig, Eastwood Mall in Quezon City, and Southwoods Mall in Laguna.

The inclusion of retail space allows unit holders direct exposure to domestic consumer spending and foot traffic trends across integrated suburban centers.

The hospitality component consists of the 737-room Holiday Inn Express Manila Newport City, covering 26,500 square meters of floor space. Accounting for nine percent of the infusion, the property expands MREIT’s exposure to aviation and tourism traffic near Terminal 3 of Ninoy Aquino International Airport.

Six office buildings account for the remaining 117,200 square meters, or 38 percent of the added space. The assets include Science Hub Tower 2 and Venice Corporate Center in McKinley Hill, Six West Campus in Taguig, One Paseo in Pasig, Global One in Eastwood City, and Horizon Center in Newport City.

The portfolio of properties being transferred holds a blended occupancy rate of 91 percent and a weighted average lease expiry of 5.3 years.

“As we scale, we remain focused on driving cost efficiencies across the portfolio,” MREIT President and Chief Executive Officer Jose Arnulfo Batac said. 
“This provides a clear path to margin improvement and, in turn, dividend-per-share accretion for shareholders. MREIT’s next phase of growth is about building a larger, more diversified platform that drives long-term value,” he added. (James A. Loyola)