MREIT Inc., the real estate investment arm of Megaworld Corp, signed an agreement to acquire 12 commercial properties, its largest single asset infusion ever, to expand its portfolio to nearly 1 million square meters.
The planned acquisition, known as the “Wave 5” expansion, will increase the company’s total portfolio by 47 percent to 950,000 square meters from 647,000 square meters, MREIT said in a stock exchange disclosure on Friday.
The assets cover around 303,500 square meters of gross leasable area, which includes five lifestyle malls, six Grade A office buildings and one internationally branded hotel.
MREIT signed the memorandum of agreement for the potential acquisition of the income-generating properties from Megaworld Corp, Travellers International Hotel Group and Southwoods Mall Inc.
The companies expect to complete due diligence and finalize definitive agreements within the second half of 2026.
To fund the deal, MREIT’s board will seek shareholder approval to issue up to 1.8 billion primary common shares for a property-for-share swap.
The transaction will diversify the company’s real estate investment trust assets, reducing its reliance on offices. The deal will shift its portfolio mix to about 77 percent office, 20 percent retail and 3 percent hospitality, compared with its current exposure of more than 95 percent office properties.
“Wave 5 is the biggest step in MREIT’s growth journey since our IPO,” MREIT Chairman Kevin Tan said.
“We are positioning MREIT for the next decade of compounding growth,” he said.
The proposed mall infusion includes Eastwood Mall in Quezon City, Venice Mall in Taguig City, Lucky Chinatown Mall in Manila, Festive Walk Mall in Iloilo City and Southwoods Mall in Biñan, Laguna. These retail assets have a combined gross leasable area of 160,000 square meters.
The office assets total 117,000 square meters and 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. MREIT will also acquire Holiday Inn Express Manila in Newport City, marking the company’s first hotel asset.
MREIT president and chief executive Jose Arnulfo Batac said the transaction would be structured to immediately boost dividends per share.
The new assets have a combined occupancy rate of around 92 percent and a weighted average lease expiry of 5.8 years, providing longer-term income visibility for shareholders, the company said.
The article was originally published in Manila Standard and written by Jenniffer B. Austria.
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