MREIT to acquire additional P15-B projects from Megaworld

Megaworld Corp. is readying a new infusion of P15 billion worth of commercial properties into its real estate investment trust (REIT) arm, MREIT Inc.

The transactions would be completed within the year and was in line with its commitment to boost MREIT’s portfolio by P20 billion.

“For our next infusion, we are already considering properties from townships in key growth areas outside of Metro Manila where MREIT does not have a presence yet,” MREIT president and CEO Kevin Tan said in a statement over the weekend.

“This will further diversify our portfolio and allow us to tap into other growth centers around the country,” he added.

MREIT recently acquired P5.27 billion worth of office building projects within Megaworld’s townships in Iloilo City and Taguig City in Metro Manila. These were the Festive Walk 1B and Two Global Center in Iloilo Business Park and One West Campus and Five West Campus in McKinley West, Taguig City.

MREIT’s expansion follows its initial public offering (IPO) last October, when it acquired four properties for P9.1 billion.

Cash dividend

Recent acquisitions would allow MREIT to pay a full-year cash dividend of P1 per share or a yield of 6.2 percent, if based on its IPO price.

During the company’s stockholders’ meeting last week, Tan said acquisitions would boost returns to investors.

“In line with our vision, we prepared a roadmap that calls for the expansion of MREIT’s property portfolio to one million square meters before the end of the decade,” Tan said.

“Given our access to Megaworld’s extensive office portfolio amounting to 1.4 million square meters, we believe that this is achievable. In 2022 alone, we are looking to acquire up to P20 billion worth of office properties from our sponsor,” he added.

Once the pending acquisitions are completed, MREIT’s portfolio will cover 18 office properties in four Megaworld premier townships. These are 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.

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The article was originally published in Inquirer.NET and written by Miguel R. Camus.