Megaworld to Reinvest P5.6 Billion for Township Expansion

MANILA, Philippines — Property giant Megaworld Corp. is set to reinvest over P5 billion raised from block sales of MREIT Inc. shares over the past four months to support the expansion of township projects. Megaworld raised P5.6 billion from multiple block sales of MREIT shares between April and July 2026, in preparation for the fifth wave of asset infusion into MREIT. The proceeds will be reinvested by the company into the next phase of recurring income-generating developments in townships across the country. Megaworld said the reinvestment reinforces the strategic role of MREIT as the company’s capital recycling platform. Through its real estate investment trust (REIT) company, Megaworld said it is able to unlock value from mature, income-generating assets and redeploy capital into new offices, malls, hotels and other township components that are expected to expand its stable recurring income base. “Through MREIT, we are able to bring that value cycle forward, allowing capital from stabilized assets to help build the next generation of developments and expand our recurring income platform across our townships,” Megaworld president and CEO Lourdes Gutierrez-Alfonso said. Gutierrez-Alfonso said Megaworld townships are designed to grow holistically, creating new opportunities to introduce offices, malls, hotels, residences and lifestyle destinations that reinforce one another as each estate matures. In provincial growth centers, Megaworld said the reinvestment would advance developments that combine tourism, office, retail, hospitality and residential components. In Metro Manila, meanwhile, the proceeds will support ArcoVia City in Pasig. “MREIT’s next phase of growth goes beyond scale. Wave 5 expands the platform from an office-led portfolio into a broader township-backed REIT with a deeper mix of mall and hotel assets,” MREIT chairman Kevin Tan said. The Wave 5 infusion will add 303,500 square meters of gross leasable area (GLA), set to bring MREIT’s portfolio to over 950,000 square meters and within sight of its one-million-square-meter milestone ahead of its 2027 target. It will also mark MREIT’s most significant diversification to date, shifting its asset mix from over 95 percent office to approximately 77 percent office, 20 percent mall and three percent hotel. “This gives shareholders access to a wider range of recurring income streams generated within Megaworld’s integrated estates, where each component strengthens the others to drive long-term value creation,” Tan said. As part of its long-term leasing expansion strategy, Megaworld is targeting two million square meters of office GLA and one million square meters of retail GLA by 2030, bringing its total leasing portfolio to three million square meters.