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Megaworld’s MREIT to acquire P20 billion worth of assets this year

MREIT Inc., the real estate investment trust (REIT) firm by Megaworld Corporation, said Thursday it is set to acquire additional office assets worth around P20 billion this year.

The planned acquisition will eventually increase the company’s portfolio value by 34% from the current P58.5 billion to P78.5 billion by the end of 2022, MREIT said in a statement.

These properties will come from various Megaworld townships across the country, it said.

“MREIT is looking to surpass its target for 2022 in terms of asset injection. These new assets may include some of our ‘built-to-suit’ properties, which are considered superior in both quality and lease tenure,” said Kevin Tan, president and CEO of MREIT.

“These new properties have a multinational tenant base, which include large financial, healthcare, technology, and consulting firms. We earlier announced an additional 44,300 square meters by end of the year, but we are working to further bulk it up with more assets as we continuously look for ways to increase dividend yields for our shareholders,” added Tan.

In December last year, MREIT completed the acquisition of four commercial properties with a total gross leasable area (GLA) of 55,700 square meters at the cost of P9.1-billion. 

By the end of last year, MREIT said it expanded its portfolio which consisted of 14 prime, grade A buildings with a total GLA of around 280,000 square meters located in Philippine Economic Zone Authority-accredited zones in the sponsor’s townships of Eastwood City, McKinley Hill, and Iloilo Business Park.

“We believe that the current business conditions are conducive to the attainment of our growth plans.  We are currently looking at several properties for potential acquisition, not just in these three townships but also in two more new Megaworld townships. We are very optimistic of our very long growth runway considering that Megaworld is building more offices and even launched new townships last year,” said Tan.

The various properties will be infused throughout the year with funding expected to come primarily from equity and potentially some debt, according to MREIT.

Currently, MREIT’s percentage of debt versus total deposited properties is at around 12%, well below the 35% cap set in the REIT law.

“There are still a number of items that we have to finalize, and as everyone knows, we have to go through the process as set under the REIT Law.  But our objective for the year is to deliver on this enhanced investment plan and ensure the sustained growth of the company,” said Tan.

MREIT aims to have a portfolio GLA of 500,000 square meters by 2024 and increase this further to one million square meters before the end of the decade. — BM, GMA News