MREIT to Infuse P27 Billion in Assets for Diversification

MANILA, Philippines — MREIT Inc. is undertaking its biggest asset infusion to date through a P27-billion property-for-share swap transaction as part of efforts to further diversify its asset mix. MREIT said the asset infusion, which has been approved by its board of directors, would consist of mall, hotel and office assets. The fifth wave or Wave 5 of asset infusions into MREIT, once approved by the Securities and Exchange Commission, will bring the company’s total assets under management to P122 billion. The Wave 5 transaction will be implemented through a property-for-share swap with Megaworld Corp., Travellers International Hotel Group Inc. and Southwoods Mall Inc. at a subscription price of P16.50 per share. The price represents an 18.6-percent premium over MREIT’s 30-day volume-weighted average price. MREIT said Wave 5 would be the biggest asset infusion among publicly listed real estate investment trusts at the Philippine Stock Exchange this year in terms of total value. Including the P16.2-billion Wave 4 completed in the first quarter, the asset infusions will bring MREIT’s total 2026 infusions to over P43 billion. MREIT president and CEO Jose Arnulfo Batac said the company’s next phase of growth is about building a larger and more diversified platform that drives long-term value for shareholders. “As we scale, we remain focused on driving cost efficiencies across the portfolio. This provides a clear path to margin improvement and, in turn, dividend-per-share accretion for shareholders,” Batac said. Wave 5 marks MREIT’s most significant diversification to date as it will shift the company’s asset mix to approximately 77 percent office, 20 percent retail and three percent hotel. MREIT’s portfolio is currently over 95 percent office by gross leasable area (GLA). The company said the wider asset base would also expand its geographic footprint from five to nine Megaworld townships, deepening its exposure to high-traffic mixed-use estates. A total of 303,900 square meters of GLA will be added to MREIT’s portfolio under Wave 5. The retail component includes five lifestyle malls with a combined GLA of 160,200 square meters, representing 53 percent of the infusion. These are Festive Walk Mall at Iloilo Business Park in Iloilo City; Lucky Chinatown Mall in Binondo, Manila; Venice Grand Canal Mall in McKinley Hill, Taguig; Eastwood Mall in Quezon City and Southwoods Mall in Biñan City, Laguna. MREIT said the inclusion of these assets gives the company’s shareholders direct exposure to consumption-driven upside, supported by the sustained strength of foot traffic and retail activity. The office component, meanwhile, consists of six high-occupancy office assets totaling 117,200 square meters of GLA, or 38 percent of the upcoming infusion.