Mreit Inc., the real estate investment trust (REIT) of property developer Megaworld Corp., is embarking on its largest asset infusion of Andrew Tan’s properties to date consisting of mall, hotel and office assets through a property-for-share swap transaction valued at P27 billion.
The transaction will be implemented through a property-for-share swap with Megaworld.
Travellers International Hotel Group Inc. and Southwoods Mall Inc. at a subscription price of P16.50 per share.
This represents an 18-percent premium over the 30-day volume-weighted average price.
The transaction represents the fifth wave of asset infusions into the company. Once approved by the Securities and Exchange Commission (SEC), this will bring Mreit’s total assets under management to P122 billion. The asset infusion will add 303,900 square meters of gross leasable area (GLA) to Mreit’s portfolio.
Upon completion, Mreit portfolio will reach 950,000 square meters of GLA, close to the 1 million-square-meter target set for 2027.
The retail component includes five shopping malls with a combined gross leasable area of 160,200 square meters, representing 53 percent of the infusion.
These are Festive Walk Mall at Iloilo Business Park in Iloilo City; Lucky Chinatown Mall in Binondo, Manila; Venice Grand Canal Mall in McKinley Hill, Taguig; Eastwood Mall in Quezon City; and Southwoods Mall in Biñan City, Laguna.
These malls are established destinations within Megaworld’s integrated urban communities.
Their inclusion gives Mreit’s shareholders direct exposure to consumption-driven upside, supported by the sustained strength of foot traffic and retail activity. The infusion also includes the 737-room Holiday Inn Express Manila Newport City, the biggest hotel in Newport City in terms of room keys, with 26,500 square meters of GLA, accounting for 9 percent of the total infusion.
The office component consists of six office assets totaling 117,200 square meters of GLA, or 38 percent of the infusion.
These are Science Hub Tower 2 and Venice Corporate Center in McKinley Hill; Six West Campus in McKinley West in Taguig City; One Paseo in ArcoVia City in Pasig; Global One in Eastwood City; and Horizon Center in Newport City.
The current infusion of assets has a blended occupancy rate of 91 percent and a weighted average lease expiry of 5.3 years.
This year, asset infusion into the company reached P43 billion, including the P16.2-billion completed in the first quarter.