News & Media
MREIT plans to acquire seven new office assets in Taguig, Iloilo and Davao
Published on June 1, 2023
MREIT, Inc., the REIT company of the country’s largest office landlord Megaworld Corporation, is eyeing the acquisition of seven (7) grade A office assets from Megaworld Corporation with a total gross leasable area of around 150,500 square meters. This after the two companies signed a memorandum of understanding (MOU) for the possible acquisition of the said assets.
These potential additions include Two West Campus (9,500 sqm) and Ten West Campus (36,400 sqm) in McKinley Hill, Science Hub Tower 3 (20,500 sqm) and Science Hub Tower 4 (20,700 sqm) in McKinley West, One Fintech Place (18,200 sqm) and Two Fintech Place (18,100 sqm) in Iloilo Business Park, and Davao Finance Center (27,100 sqm) in Davao Park District. In aggregate, these assets generated Php1.2 billion of rental income in 2022.
“These properties boast high average occupancy rate of 94% 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 Corporation 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,” says Kevin L. Tan, President and CEO of MREIT, Inc.
When the new properties being eyed by MREIT is concluded, the company’s portfolio will grow to around 475,500 sqm, higher by 46% compared to the current 325,000 sqm and bringing MREIT closer to its target of 500,000 sqm of assets under management by end-2024.
Since its IPO in 2021, the company has already injected eight office buildings into its portfolio and grew its value by 25% to Php62 billion, following the two sets of previous acquisitions.
To date, MREIT’s portfolio covers 18 office properties in four (4) Megaworld premier townships: 1800 Eastwood Avenue, 1880 Eastwood Avenue, and E-Commerce Plaza in Eastwood City; One World Square, Two World Square, Three World Square, 8/10 Upper McKinley, 18/20 Upper McKinley, and World Finance Plaza in McKinley Hill; One Techno Place, Two Techno Place, Three Techno Place, One Global Center, Two Global Center, Festive Walk 1B, and Richmonde Tower in Iloilo Business Park; and One West Campus and Five West Campus in McKinley West.