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MREIT, Inc. (“MREIT”), the real estate investment trust of property giant Megaworld, is embarking on its largest asset infusion to date consisting of mall, hotel, and office assets through a property-for-share swap transaction valued at P27 billion, following the approval by its Board of Directors.

So far, this will be the biggest asset infusion among publicly listed REITs at the Philippine Stock Exchange (PSE) this year in terms of total value.

The transaction represents the fifth wave (“Wave 5”) of asset infusions into MREIT. Once approved by the Securities and Exchange Commission (SEC), Wave 5 will bring MREIT’s total assets under management to P122 billion. This caps a record-breaking year of asset infusions, bringing total 2026 infusions to over P43 billion, including the P16.2-billion Wave 4 completed in the first quarter.

Wave 5 will add 303,900 square meters of gross leasable area (GLA) to MREIT’s portfolio, representing the company’s largest expansion so far by transaction value and leasable area. Upon completion, MREIT’s portfolio will exceed 950,000 square meters of GLA, close to the 1-million-square-meter target set for 2027.

The transaction marks MREIT’s most significant diversification to date. From a portfolio that is currently over 95% office by GLA, the Wave 5 assets will shift MREIT’s asset mix to approximately 77% office, 20% retail, and 3% hotel. The wider asset base will also expand MREIT’s geographic footprint from five to nine Megaworld townships, deepening the REIT’s exposure to high-traffic mixed-use estates.

The retail component includes five lifestyle malls with a combined GLA of 160,200 square meters, representing 53% of the Wave 5 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. These malls are established destinations within Megaworld’s integrated urban communities. Their inclusion gives MREIT shareholders direct exposure to consumption-driven upside, supported by the sustained strength of foot traffic and retail activity.

Wave 5 also includes the 737-room Holiday Inn Express Manila Newport City, the biggest hotel in Newport City in terms of room keys, with 26,500 square meters of GLA, accounting for 9% of the total infusion. The asset expands MREIT’s hospitality component and broadens its participation in travel, tourism, meetings and events, and airport-related demand within Newport City, Megaworld’s integrated township located across Terminal 3 of the Ninoy Aquino International Airport (NAIA).

The office component consists of six high-occupancy office assets totaling 117,200 square meters of GLA, or 38% of the Wave 5 infusion. These are Science Hub Tower 2 and Venice Corporate Center in McKinley Hill; Six West Campus in McKinley West in Taguig City; One Paseo in ArcoVia City in Pasig; Global One in Eastwood City; and Horizon Center in Newport City.

“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. MREIT’s next phase of growth is about building a larger, more diversified platform that drives long-term value for shareholders,” says Jose Arnulfo Batac, President and CEO of MREIT, Inc.

The Wave 5 assets have a blended occupancy rate of 91% and a weighted average lease expiry (WALE) of 5.3 years.

The Wave 5 transaction will be implemented through a property-for-share swap with Megaworld, Travellers International Hotel Group, Inc., and Southwoods Mall, Inc. at a subscription price of P16.50 per share. This represents an 18.6% premium over the 30-day Volume-Weighted Average Price (VWAP), highlighting MREIT’s asset infusion discipline that ensures portfolio expansion is not pursued for scale alone but to enhance shareholder value through material dividend-per-share accretion.