real estate industry

MREIT to buy office towers worth P5.3 billion

Ralf Rivas
MREIT to buy office towers worth P5.3 billion

MREIT

The acquisition of four new prime offices is part of MREIT's P20-billion property-for-shares acquisition plan for 2022

MANILA, Philippines – Megaworld Real Estate Investment Trust (MREIT) is set to acquire four office properties worth P5.3 billion, ramping up its total portfolio to P65 billion.

The offices have a total gross leasable area of 44,567 square meters and are within accredited zones of the Philippine Economic Zone Authority (PEZA). 

After the acquisition, the offices will increase MREIT’s asset portfolio by 16% to 325,000 square meters and will bring total properties to 18.

The new property infusions include Festive Walk 1B and Two Global Center in Iloilo Business Park, and One West Campus and Five West Campus in McKinley West, Taguig City. These properties have an average occupancy rate of 96%.

“This will be the first time that we infuse office assets from McKinley West, one of our fastest growing townships in Metro Manila where some of the big names in the BPO (business process outsourcing) industry are operating today. This township location also commands one of the highest rental rates in the Greater Manila Area because of the high demand for office spaces in this area,” said Kevin Tan, president and chief executive officer of MREIT.

The latest acquisitions are part of the initial tranche of the company’s P20-billion property-for-shares acquisition plan for 2022.

The properties will be exchanged for 263.700 million MREIT primary common shares at a share price of P20 per share representing a 3.8% and 1.4% premium over the volume weighted average closing price for a period of 30 and 40 trading days until March 30.

In December 2021, MREIT also acquired four PEZA-accredited office properties in Iloilo Business Park and McKinley Hill. – Rappler.com

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Ralf Rivas

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