SEC approves MREIT's P5.3-B property purchase plan

MANILA, Philippines — The Securities and Exchange Commission approved MREIT Inc.’s plan to fatten its property portfolio through the purchase of prime office spaces worth P5.3 billion.

In a disclosure sent to the Philippine Stock Exchange on Monday, Megaworld Corp.’s real estate investment trust company said that office properties were already accredited by the Philippine Economic Zone Authority. These office spaces are located in McKinley West in Taguig City and Iloilo Business Park. 

Total gross leasable area stood at 44,567 square meters. The acquisition will increase MREIT’s portfolio by 16% to 325,000 square meters.

MREIT said the properties will be swapped for 263.7 million primary common shares at P20 apiece. The listed REIT noted that this represents 41% of MREIT’s last traded price of P14.2 on March 24. 

“The SEC approval of our property-for-share acquisition results in the recognition of income from the new assets by MREIT from January 1, 2023, which will help drive our growth. The high occupancy rate of these buildings is clear proof of the quality of our assets and their strategic locations,” said Kevin Tan, president and chief executive officer of MREIT.

MREIT said it was eyeing to boost its property portfolio by 54% to 500,000 square meters by 2024.

The acquisition included Festive Walk 1B and Two Global Center in Iloilo Business Park as One West Campus and Five West Campus in McKinley West, Taguig City.

MREIT noted that the properties up for acquisition have an occupancy rate of 96%.

Shares in MREIT finished trading up 3.24% to P14.66 apiece on Monday. – Ramon Royandoyan