initial public offerings

Megaworld eyes massive P27.3-billion REIT IPO

Ralf Rivas
Megaworld eyes massive P27.3-billion REIT IPO

MEGAWORLD. 1800 Eastwood Avenue in Eastwood City.

Megaworld Corporation

Megaworld intends to reinvest the net proceeds from the offer in 16 projects in the Philippines

Megaworld Corporation is planning to launch the Philippines’ biggest real estate investment trust (REIT) offering in 2021.

In a statement on Wednesday, June 16, Megaworld said its subsidiary submitted its registration statement before the Securities and Exchange Commission for its planned P27.3-billion ($567.8-million) REIT initial public offering (IPO).

This is bigger than Robinsons Land’s planned P26.6-billion REIT IPO.

Megaworld REIT (MREIT) plans to offer up to 1.2 billion common shares at P22 apiece.

Megaworld intends to reinvest the net proceeds from the offer in 16 projects in the Philippines.

Through a property-for-share swap, Megaworld injected into MREIT 10 office, retail, and hotel assets with a gross leasable area of 224,430 square meters.

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“Our REIT includes properties in three of our most sought-after premier township developments of Eastwood City, McKinley Hill, and Iloilo Business Park, which are home to around 200,000 BPO (business process outsourcing) and other office workers today,” said Kevin Andrew Tan, president and chief executive officer of MREIT.

“Our ‘tried-and-tested’ signature concept of the township has attracted over 200 BPO and multinational companies to locate with us through the years since we started our first-ever Eastwood cyberpark in 1999,” added Tan.

BDO Capital, Credit Suisse (Singapore), UBS AG Singapore Branch, and DBS Bank were tapped as joint global coordinators for the IPO, and BDO Capital as domestic lead underwriter.

Megaworld is the fifth company to offer REITs, two of which – Ayala Land and Double Dragon – have already been listed. – Rappler.com

$1 = P48.08

Ralf Rivas

A sociologist by heart, a journalist by profession. Ralf is Rappler's business reporter, covering macroeconomy, government finance, companies, and agriculture.