MANILA - Megaworld's listed real estate investment trust MREIT said on Monday it has secured the approval of the Securities and Exchange Commission for the acquisition of 4 office properties in McKinley West and Iloilo Business Park for P5.3 billion.
The 4 office properties, which are the Festive Walk 1B and Two Global Center in Iloilo Business Park and the One West Campus and Five West Campus in Mckinley West in Taguig, are grade A Philippine Economic Zone Authority-Accredited, MREIT told the stock exchange.
MREIT said the new acquisitions would have a total gross leasable area (GLA) of 44,567 square meters, which would bring the company's total asset portfolio to 325,000 sqm, higher by 16 percent from its current 280,000 sqm.
The properties will be exchanged for 263,700,00 primary common shares at P20 per share, it said.
"The SEC approval of our property-for-share acquisition results in the recognition of income from the new assets by MREIT from Jan. 1, 2023, which will help drive our growth," MREIT President and CEO Kevin Tan said.
As of the end 2022, MREIT said the 4 prime office properties have an occupancy rate of 96 percent, which is above the industry average of 80 to 81 percent.
With the recent acquisition, MREIT's said its portfolio would be 18 office properties in 4 Megaworld townships.