MREIT Inc., the real estate investment trust owned by bilyonaryo Andrew Tan’s Megaworld Corp., is set to expand its portfolio with the acquisition of four prime, grade A PEZA-accredited office properties in McKinley West and Iloilo Business Park worth a total of P5.3 billion.
The new acquisitions will increase the company’s asset portfolio by 16 percent, bringing it to a total of 325,000 square meters of gross leasable area.
The properties, including Festive Walk 1B and Two Global Center in Iloilo Business Park, as well as One West Campus and Five West Campus in McKinley West, will be acquired through a share swap.
As of the end of 2022, the four prime office properties had an occupancy rate of 96 percent, well above the industry level of 80 to 81 percent.
The acquisition will be exchanged for 263.7 million primary common shares at P20 per share, representing a 41 percent premium over MREIT’s current price of P14.20 per share on March 24, 2023.
Expressing optimism about the acquisition, MREIT president and CEO Kevin Tan said: The high occupancy rate of these buildings is a clear proof of the quality of our assets and their strategic locations.”
The acquisition will expand MREIT’s portfolio to 18 office properties in four Megaworld premier townships, including Eastwood City, McKinley Hill, Iloilo Business Park, and McKinley West.
MREIT aims to grow its portfolio size by 54 percent to 500,000 square meters by 2024 and deliver at least 10 percent annual total shareholder return.
