MREIT Inc., the real estate investment trust company of Megaworld Corp., said Thursday it plans to acquire seven office towers with combined leasable space of 150,000 square meters.
The acquisitions will boost MREIT’s portfolio by 46 percent to 475,000 sq. m. from the 325,000 sq. m. and bringing the company closer to its target of having 500,000 sq. m. of assets under management by end-2024, the company in a disclosure to the stock exchange.
The new office towers to be acquired are in the cities of Taguig, Iloilo and Davao. These properties are owned by Megaworld.
The office towers include Two West Campus with 9,500 sq. m. and Ten West Campus (36,400 sq. m.) in McKinley Hill; Science Hub Tower 3 (20,500 sq. m.) and Science Hub Tower 4 (20,700 sq. m.) in McKinley West; One Fintech Place (18,200 sq. m.) and Two Fintech Place (18,100 sq. m.) in Iloilo Business Park; and Davao Finance Center (27,100 sq. m.) in Davao Park District.
These assets generated P1.2 billion in rental income last year.
MREIT president and chief executive Kevin Tan said these properties have high average occupancy rate of 94 percent and quality tenants, “marking a significant step towards our commitment to deliver sustained growth and value to our investors.”
Tan said MREIT would conduct a comprehensive financial, legal and technical due diligence to ensure the viability of the assets. It plans to execute definitive agreement within the third quarter of 2023.
“We look forward to finalizing MREIT’s next set of acquisitions soon,” Tan said.
The Securities and Exchange Commission approved MREIT’s acquisition of four prime office building with total leasable area of 44,567 sq. m. in March.
Since its initial public offering in 2021, MREIT has injected eight office buildings into its portfolio and grew its value by 25 percent to P62 billion.
MREIT’s portfolio covers 18 office properties in four Megaworld premier townships.
MREIT, real estate investment trust company, engages in investments in income-generating real estate that meets a select set of criteria.
The Philippine Stock Exchange defined an REIT as a stock corporation established principally for the purpose of owning income-generating real estate assets.
MREIT reported a distributable income of P2.5 billion in 2022, or more than double the P1.1 billion it declared in 2021 as revenues grew to P3.6 billion from P1.5 billion.
The company paid out total dividends of P0.9770 per share in 2022.