MREIT Inc. is considering the infusion of mall and retail assets from its sponsor, Megaworld, to diversify its portfolio, which is targeted to reach one million square meters of gross leasable area (GLA) by 2027.
The infusion of mall assets seeks to capture the continued growth in consumer spending and the strong momentum in mall leasing, complementing MREIT’s established base of high-occupancy office assets.
‘Our goal is to diversify our portfolio and expand our revenue base. So while the country is experiencing an impressive growth in consumer activities, we want to tap into these opportunities. This will enable us to deliver both growth and diversification, keeping our portfolio resilient and relevant for the years ahead,’ MREIT chairman Kevin Tan said.
MREIT said that property giant Megaworld continues to hold a substantial portfolio of income-generating assets, including around one million square meters of office GLA and 500,000 square meters of retail GLA that may still be infused over time.
The company said that this deep pipeline provides flexibility and underscores the long-term growth runway as MREIT accelerates toward its one million square meter target.
In terms of Megaworld Lifestyle Malls, foot traffic and sales across the country have already surpassed pre-pandemic levels, with strong leasing activities from both global and homegrown brands.
Mall occupancy has also reached a record 93 percent as of end-June.
‘This favorable environment underpins MREIT’s strategy to bring in more retail assets in the future, ensuring that its portfolio captures both the growth of business process outsourcing and the resurgence of Philippine consumer spending,’ the company said.
MREIT’s current portfolio spans across Megaworld’s key townships, particularly in Eastwood City, McKinley Hill, McKinley West, Iloilo Business Park and Davao Park District, with occupancy consistently among the highest in the industry.
The company remains focused on expanding its portfolio through accretive acquisitions, while maintaining strong dividend payouts to investors.