MREIT Inc. said it has received regulatory approval for the transfer of four grade A PEZA-accredited office properties in McKinley West and Iloilo Business Park worth P5.3 billion from mother company Megaworld Corp.
“These properties include Festive Walk 1B and Two Global Center in Iloilo Business Park, as well as One West Campus and Five West Campus in McKinley West, Taguig City,” MREIT said.
The new acquisitions – MREIT will exchange shares for the buildings – will have a total gross leasable area (GLA) of 44,567 square meters (sq.m.) which will increase the company’s asset portfolio by 16 percent to 325,000 sq.m. in GLA from the current portfolio of 280,000 sq.m.
“As of the end 2022, the four prime office properties have an occupancy rate of 96 percent, significantly above the industry level of between 80 percent and 81 percent,” MREIT said.
“The properties will be exchanged for 263,700,000 primary common shares at P20 per share and represents a 41 percent premium over MREIT’s current price of P14.20 per share on March 24, 2023. The properties to be infused are dividend accretive, meaning that the properties are expected to increase MREIT’s dividend payments to its shareholder,” it added.
Kevin Tan, MRIET president, said asset infusion will help drive growth.
“The high occupancy rate of these buildings is a clear proof of the quality of our assets and their strategic locations. The new office assets from McKinley West now command one of the highest rental rates in the Greater Manila Area, supported by the high demand for office space in this area,” he said.
MREIT has started booking revenues from the asset since January.
