Megaworld Corp. is preparing the infusion of seven additional grade A office assets into its real estate investment trust (REIT) MREIT Inc.
The assets have a total gross leasable area of around 150,500 square meters (sq.m.) and generated P1.2 billion in rent last year.
MREIT said it signed the memorandum of understanding (MOU) with Megaworld for the possible acquisition of the assets.
“These potential additions include Two West Campus (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,” MREIT said.
“These properties boast 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. Over the coming weeks, our team will work alongside our sponsor Megaworld to conduct comprehensive financial, legal, and technical due diligence to ensure the viability of the assets with a goal to execute definite agreements within the third quarter of the year. We look forward to finalizing MREIT’s next set of acquisitions soon,” said Kevin Tan, MREIT president and also chief strategy officer of Megaworld.
MREIT said the infusion of the new assets will grow its portfolio to 475,500 sq.m., up 46 percent from the current 325,000 sq.m., and bring it close to its target of 500,000 sq.m. of assets under management by end-2024.
