Megaworld to reinvest MREIT proceeds in Bacolod, Cebu, Palawan township expansions

Listed property developer Megaworld Corp. is set to reinvest some P3.4 billion from the block sale of shares in its real estate investment trust (REIT) in July to expand the offerings of its townships in Bacolod, Cebu, and Palawan.

Among the townships covered is The Upper East township in Bacolod, a 34-hectare business and lifestyle district on a property that used to be the Bacolod-Murcia Milling Company and sugar complex.

The company has already completed the construction of three residential condominium towers and one office building. Two more residential developments, an office tower, and a hotel are under construction, with the lifestyle mall set to be constructed starting 2026.

The proceeds will also partly fund the expansion of The Mactan Newtown in Lapu-Lapu City in Cebu, with four residential developments completed, and three more under construction. It also hosts five office towers and two hotels.

Another township set for expansion is the Paragua Coastown in San Vicente, Palawan, where Megaworld is building two hotels, two residential condominiums, a residential village, commercial districts, and nature parks in a 462-hectare eco-tourism community.

“These three provincial townships; while different in scale and themes, have huge potential for tourism, which will drive business into these localities,” Megaworld president and chief executive officer Lourdes Gutierrez-Alfonso said in an emailed statement.

“We look forward to the new income-generating assets that will be part of the potential future assets of MREIT, particularly the new malls and offices that will be built,” Kevin Tan, chairman of MREIT, Megaworld’s REIT, said.

Tan said the company is moving closer to its 1-million-square-meter gross leasable area (GLA) target, with the projects set to enhance its long-term earnings visibility and shareholder value.

MREIT’s portfolio currently covers 24 prime office properties in five Megaworld townships: Eastwood City in Quezon City; McKinley Hill and McKinley West in Taguig; Iloilo Business Park in Iloilo City; and Davao park District in Davao City. — BM, GMA Integrated News