Megaworld sells P2.2-B in MREIT shares
Property developer Megaworld Corp. has shed some of its shares in its real estate investment trust (REIT), raising P2.24 billion and making room for possible asset infusions.
Andrew Tan-led Megaworld on Thursday told the exchange it had sold 168.63 million common shares of MREIT Inc. for P13.28 each under a block sale transaction.
The selling price is a 4.46-percent discount from MREIT’s closing price of P13.90 each on Wednesday.
In its disclosure, Megaworld said proceeds from the block sale would be settled on Friday, Sept. 19. It will likewise submit its reinvestment plan detailing the use of proceeds.
Maybank Securities, BDO Securities, First Metro Securities and RCBC Securities were the brokers for the transaction.
A sponsor’s share sale typically raises the public ownership level of the REIT, making room for possible asset infusions in the future.
The subject shares of the sale are equivalent to 4.53 percent of MREIT. Once this is settled, it would raise MREIT’s public ownership level to 40 percent.
Earlier, MREIT sped up its goal of reaching 1 million square meters of gross leasable area (GLA) by three years following a strong first semester.
MREIT said it was aiming to reach its GLA target by 2027, from its original plan of 2030. This is in line with the company’s vision of building a REIT that would “grow faster and deliver more value than the market expected.”
MREIT currently has 24 offices in its portfolio spread across Megaworld’s townships. These include Eastwood City, McKinley Hill, McKinley West, Iloilo Business Park and Davao Park District.
