Megaworld wants REITs offering to be among 'biggest' in Southeast Asia

Bruce Rodriguez, ABS-CBN News

Posted at Jun 18 2021 02:24 PM

MANILA - Megaworld Corp wants the initial public offering of its real estate investment trust to be among the biggest in Southeast Asia.

The Andrew Tan-led firm on Thursday disclosed it was seeking approval of its P27.3 billion REIT offering of unit MREIT. 

At the maximum size of P27.3 billion, the MREIT IPO potentially surpasses other REIT listings in the country from the Ayala group's P15.1 billion listing last year and other REITs in the pipeline.

"Our ultimate goal is to make MREIT not only the largest REIT in the Philippines but to eventually be one of the largest in Southeast Asia," Megaworld chief strategy officer Kevin Tan said during the company's virtual stockholders meeting.

"The MREIT offering will benefit Megaworld to unlock the value of its prime property investments," he added.

The REITs offering aims to boost office lease transactions this year by 13 percent to 315,000 square meters and to complete 21 new projects in the next 5 years, of which 70 percent will be office developments, Tan said.

The BPO sector continued to grow despite the pandemic last year and is projected to continue expanding which "gives us a lot of confidence that the office sector is indeed quite resilient," Tan said.

Real estate investment trusts allow investors to engage in the real estate sector through dividends.

DoubleDragon's DDMP is also listed in the stock exchange while Filinvest Land and Robinsons Land are seeking approval of their REITs offerings. 

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