Megaworld's REIT Arm, MREIT, Inc., to Acquire Six Assets Worth P13.15 Billion

The largest office landlord in the country, Megaworld Corporation, through its REIT business, MREIT, Inc., announced that it will purchase six office buildings totaling P13.15 billion. If approved by the Securities and Exchange Commission (SEC), the transaction will add 157,000 square feet, or 48%, to the MREIT's portfolio, bringing it to 482,000 square feet.

The transaction encompasses the following locations: Davao Finance Center in Davao Park District; One Fintech and Two Fintech in Iloilo Business Park; Ten West Campus, One Le Grand, and Two West Campus in McKinley West.

In exchange for the properties, 926,162,000 MREIT main shares will be purchased at a price of P14.20 per share, which is 10% more than the MREIT's closing price of P12.94 per share on May 10, 2024. The company's RPT Committee and Board of Directors approved the acquisition price of the assets, which was supported by appraisal reports and a third-party fairness assessment.

“The acquisition of these properties moves us closer to our target portfolio of 500,000 sqm by the end of 2024. This transaction not only supports the sustained growth of MREIT but is also dividend accretive to our shareholders. We are immediately working on the next set of acquisitions to reach our target assets under management before the year concludes,” says Kevin L. Tan, president and chief executive officer, MREIT, Inc.
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Meanwhile, MREIT announced to its shareholders that, as a result of its distributable income in the first quarter of 2024, it will pay cash dividends of P0.2460 per share. To shareholders with records as of May 24, 2024, the dividends will be paid on June 14, 2024. When this is annualized, the dividend yield on MREIT amounts to 7.6% as of May 10, 2024, when the share price closed at P12.94.

To date, MREIT’s portfolio covers 18 office properties located in four Megaworld premier townships: 1800 Eastwood Avenue, 1880 Eastwood Avenue, and E-Commerce Plaza in Eastwood City; One World Square, Two World Square, Three World Square, 8/10 Upper McKinley, 18/20 Upper McKinley, and World Finance Plaza in McKinley Hill; One Techno Place, Two Techno Place, Three Techno Place, One Global Center, Two Global Center, Festive Walk 1B, and Richmonde Tower in Iloilo Business Park; and One West Campus and Five West Campus in McKinley West.