Megaworld Corp. eyes to raise P27.28 billion in its planned real estate investment trust (REIT) sale.
The company said it has formally submitted its application for the initial public offering of its REIT vehicle MREIT Inc., which eyes to issue 1.24 billion shares at an offer price of up to P22 per share.
Megaworld said this will be the “biggest REIT offering in the Philippines to date,” assuming full exercise of the over-allotment option.
“This would represent up to 49 percent of the total issued and outstanding shares of MREIT Inc. assuming full exercise of the over-allotment option,” the company said.
Megaworld said it will use the net proceeds to fund 16 of its projects all over the country.
Megaworld said it has infused into MREIT 10 office, retail, and hotel assets with an aggregate gross leasable area (GLA) of 224,430.80 square meters (sq.m.), located in three of its townships – Eastwood City in Quezon City, McKinley Hill in Taguig City, and Iloilo Business Park in Mandurriao, Iloilo City.
“The MREIT portfolio of assets include 1800 Eastwood Avenue, 1880 Eastwood Avenue, E-Commerce Plaza, One World Square, Two World Square, Three World Square, 8/10 Upper McKinley, 18/20 Upper McKinley, One Techno Place, Richmonde Tower, and Richmonde Hotel Iloilo,” it said.
“Our REIT includes properties in three of our most sought-after premier township developments of Eastwood City, McKinley Hill, and Iloilo Business Park, which are home to around 200,000 BPO and other office workers today. Our ‘tried-and-tested’ signature concept of the township has attracted over 200 BPO and multinational companies to locate with us through the years since we started our first-ever Eastwood cyberpark in 1999,” added Kevin Andrew Tan, MREIT president.
BDO Capital & Investment Corp. (BDO Capital), Credit Suisse (Singapore) Ltd., UBS AG Singapore Branch, and DBS Bank Ltd., were tappd as joint global coordinators, with BDO Capital as the domestic lead underwriter.
