Megaworld Corp. subsidiary MREIT Inc. is set to raise as much as P27.3 billion from what could be the country's largest real estate investment trust (REIT) initial public offering (IPO) to date.
MREIT plans to offer up to 1,239,700 common shares at an offer price of up to P22.00 apiece. This is equivalent to 49% of the total issued and outstanding shares assuming the full exercise of the overallotment option.
The net proceeds from the offering will be used to reinvest in 16 projects across the country.
The MREIT portfolio covers 10 office, retail, and hotel assets with an aggregate gross leasable area of 224,430.80 square meters.
The properties are located in three prime Megaworld townships -- Eastwood City in Quezon City, McKinley Hill in Taguig City, and Iloilo Business Park in Mandurriao, Iloilo City.
The portfolio includes 1800 Eastwood Avenue, 1880 Eastwood Avenue, E-Commerce Plaza, One World Square, Two World Square, Three World Square, 8/10 Upper McKinley, 18/20 Upper McKinley, One Techno Place, Richmonde Tower, and Richmonde Hotel Iloilo.
"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 and other office workers today," said MREIT President and CEO Kevin Andrew Tan.
"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," he added.
MREIT tapped BDO Capital & Investment Corp., Credit Suisse (Singapore) Ltd., UBS AG Singapore Branch, and DBS Branch Ltd. as joint global coordinators.
BDO Capital will also serve as domestic lead underwriter for the maiden offering.
Megaworld Corp. is currently involved in real estate sales of residential developments, leasing of office and retail space, and management of hotel operations.
Its other subsidiaries include Richmonde Hotel Group International Ltd., Eastwood Cyber One Corp., Suntrust Properties Inc., Empire East Land Holdings Inc., Global-Estate Resorts Inc., and Bonifacio West Development Corp.
Shares in Megaworld Corp. are trading down by a centavo or 0.30% at P3.27 apiece as of 10:35 a.m. versus Tuesday's finish of P3.28 apiece. —LBG, GMA News