MREIT sets landmark P27-B property asset infusion
MREIT Inc., the real estate investment trust of Megaworld Corp., is set to undertake its largest asset infusion to date, with a P27-billion property-for-share swap that will add malls, office buildings and a hotel to its portfolio.
In a disclosure on Monday, MREIT said its board approved the transaction, which is expected to become the largest asset infusion among REITs listed on the Philippine Stock Exchange this year in terms of value.
The deal represents the company’s fifth asset infusion, or Wave 5. It remains subject to approval by the Securities and Exchange Commission.
“As we scale, we remain focused on driving cost efficiencies across the portfolio. MREIT’s next phase of growth is about building a larger, more diversified platform that drives long-term value for shareholders,” said Jose Arnulfo Batac, president and CEO of MREIT.
Once completed, the transaction will increase MREIT’s assets under management to P122 billion, capping what the company described as a record year of acquisitions.
Including the P16.2-billion Wave 4 completed in the first quarter, total asset infusions this year will exceed P43 billion.
Wave 5 will contribute 303,900 square meters (sq m) of gross leasable area (GLA), bringing MREIT’s total portfolio to more than 950,000 sq m, just shy of its 1-million sq m target for 2027.
The transaction is MREIT’s largest expansion in terms of both value and leasable area.
The acquisition will significantly diversify its portfolio. From more than 95 percent office contribution in terms of GLA, this segment will go down to around 77 percent. About 20 percent will comprise retail, while hotel assets will account for the remaining 3 percent.
Diversification
It will also expand MREIT’s presence from five to nine Megaworld townships, widening its exposure to mixed-use developments.
The retail component consists of five lifestyle malls with a combined 160,200 sq m of GLA, namely: Festive Walk Mall in Iloilo Business Park, Lucky Chinatown Mall in Manila, Venice Grand Canal Mall in McKinley Hill, Eastwood Mall in Quezon City and Southwoods Mall in Biñan, Laguna.
Also included is the 737-room Holiday Inn Express Manila Newport City, the largest hotel in Newport City by room count, with 26,500 sq m of GLA.
The office portfolio, meanwhile, will gain six high-occupancy properties totaling 117,200 sq m of GLA.
These include Science Hub Tower 2 and Venice Corporate Center in McKinley Hill, Six West Campus in McKinley West, One Paseo in ArcoVia City, Global One in Eastwood City and Horizon Center in Newport City.
