Megaworld Corporation Completes Secondary Share Sale of 40.65 Million MREIT, Inc. Common Shares

The Board of Directors of Megaworld Corporation (Megaworld or MEG), the township developer, notifies MREIT, Inc., its REIT subsidiary, that the sale of 40.65 million common shares in MREIT through a block sale transaction has been approved.

A total of around P500 million was transacted when the shares were sold for P12.30 a share. The transaction, which accounted for approximately 1.5% of MREIT's total outstanding shares, had backing from an established institutional investor with a strong track record.

​“MEG will allocate the proceeds from the transaction to enhance its development pipeline, further expanding the opportunities for MREIT. Following the transaction, MEG will maintain a majority stake in MREIT, holding 54.2% of the ownership and will remain committed as its sponsor. This investment underscores the confidence in MREIT's potential as an attractive and valuable long-term investment opportunity,” says Kevin L. Tan, President and CEO of MREIT.
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In order to protect the ownership of current MREIT shareholders, all MREIT shares sold in the transactions are secondary shares that are owned by MEG. Additionally, the transaction will raise MREIT's public float to 44.4% and create additional headroom for the upcoming share exchange for properties.
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A memorandum of understanding (MOU) was inked by MREIT and its sponsor, Megaworld, last year regarding the potential purchase of seven (7) grade A office properties from Megaworld Corporation totaling 150,500 square meters of gross leasable area (GLA). If all goes well, MREIT's portfolio will expand from its existing 325,000 sq m to 475,500 sq m, a 46% increase.

​“We are on track to expand MREIT’s total GLA to 500,000 sqm by end-2024. This highlights our commitment to continuously enhancing shareholder value and fostering MREIT’s growth,” adds Tan.