Megaworld seeks approval of P27.3B real estate investment trust offering
MANILA – Megaworld Corp said Wednesday that its MREIT Inc entity has filed with the Securities and Exchange Commission a notice of registration for the IPO of its Real Estate Investment Trust (REIT).
MREIT plans to offer secondary shares of up to 1.239 billion common shares at P22 per share. It is expected to raise up to 27.3 billion pesos, with an over-allotment option, the company said in a statement to the stock exchange.
Assuming full exercise of the over-allotment option, the aggregate amount would be “the largest REIT offering in the Philippines to date,” Megaworld said.
Megaworld intends to reinvest the proceeds in 16 projects across the country.
Through a share swap, the company invested in MREIT 10 office, retail and hotel properties in 3 of its townships with a lettable area of 224,430.80 square meters.
REIT is a new investment channel that allows investors to get exposure to the real estate sector through dividends.
“We aim to be the largest REIT by portfolio in Southeast Asia,” said Kevin Tan, Megaworld’s chief strategy officer.
Tan said his REIT offering is different because the properties are focused on townships, where tenants pay a premium rent for the township lifestyle.
Townships, which have grocery stores, medical facilities, outdoor spaces, and condominiums, hotels and dormitories, are an “incredibly efficient” model that has attracted over 200 BPO customers to date, he said.
“We put the entire ecosystem in the REIT, which makes it special and very different. During the pandemic, the township model really rose, ”Tan said.
Megaworld, the company led by Andrew Tan, currently has a portfolio of lettable space with around 1.4 million m² of office property in 10 major cities in the country.
Ayala Lands AREIT and DoubleDragon’s DDMP are listed. Robinsons Land is also applying for approval of its REITs offering.
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– with a report by Michelle Ong, ABS-CBN News
ANC, ANC Top, Megaworld, Megaworld Corp. Real estate funds, MREIT, MREIT Inc, Megaworld MREIT