MREIT to add 303,500 sqm to asset portfolio

MREIT Inc., the real estate investment trust (REIT) of Megaworld Corp., on Friday announced the infusion of 12 commercial assets with a combined gross leasable area (GLA) of 303,500 square meters (sq.m.) to bring its asset portfolio close to 1 million sq.m.

Under the “Wave 5” expansion, MREIT is set to add five lifestyle malls, six office buildings, and one internationally branded hotel to its asset base, marking its largest single asset acquisition to bring its total portfolio up 47% to 950,000 sq.m. from the current 647,000 sq.m.

The acquisition will be done through a property-for-share swap, as provided for by a memorandum of understanding (MOU) for the acquisition signed by MREIT Inc., Megaworld, Travellers International Hotel Group Inc., and Southwoods Mall Inc.

This covers malls' assets totaling 160,000 sq.m. of GLA — Eastwood Mall at Eastwood City in Quezon City; Venice Mall at McKinley Hill in Taguig City; Lucky Chinatown Mall in Binondo, Manila; Festive Walk Mall at Iloilo Business Park in Iloilo City; and Southwoods Mall in Binan, Laguna.

Office assets total 117,000 sq.m. — Science Hub Tower 2 and Venice Corporate Center at McKinley Hill; Six West Campus at MicKinley West, Taguig City; One Paseo at ArcoVia City in Pasig; Global One in Eastwood City; and Horizon Center in Newport City, Pasay.

The acquisition also includes the Holiday Inn Express Manila in Newport City with 26,500 sq.m.

“Wave 5 is the biggest step in MREIT’s growth journey since our IPO. This transaction transforms MREIT from an office REIT into a diversified REIT, anchored by some of the most iconic mall and lifestyle assets in the country,” MREIT chairman Kevin Tan said in an emailed statement.

MREIT last September announced plans to double its portfolio to 1 million sq.m. of GLA by 2027, in a bid to capture the continued growth on consumer spending and the strength of the mall leasing business.