MREIT expands runway for future growth with capital hike to P8B

MREIT Inc., the real estate investment trust of property giant Megaworld Corp., is advancing its office and retail expansion plans after securing regulatory clearance to boost its capital stock to P8 billion from P5 billion.

The firm said on Friday that the capital hike approval from the Securities and Exchange Commission (SEC) would enable the issuance of new shares to acquire new properties. These may include nine office assets in McKinley Hill in Taguig City and one in Eastwood City.

These properties have about 198,500 square meters (sq m) of gross leasable area.

Once the process wraps up, this will bolster MREIT’s portfolio by 41 percent to 680,000 sq m from the current 482,000 sq m.

Aside from office acquisitions, the group is likewise pushing for portfolio diversification, targeting select retail properties.

With parent firm Megaworld still holding about 900,000 sq m of office and retail assets, MREIT is confident about having “a strong runway for future growth rounds.”

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“With the approval of our ACS (authorized capital stock) increase, we are now structurally positioned to pursue the next phase of our growth strategy,” said Jose Arnulfo Batac, president and CEO of MREIT Inc.

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

The company’s portfolio consists of prime, income-generating office assets located within Megaworld townships such as Eastwood City, McKinley Hill, McKinley West, Iloilo Business Park and Davao Park District.