News & Media

MREIT, Inc. (MREIT), the real estate investment trust company of Megaworld Corporation, has secured approval from the Securities and Exchange Commission (SEC) for its Wave 4 property-for-share swap transaction, enabling the company to proceed with the acquisition of nine Grade A office buildings located in McKinley Hill, Taguig.

The approval comes ahead of the company’s expected timeline, allowing MREIT to move forward with the next phase of its portfolio expansion strategy, with the assets set to contribute to income retroactively from January 1 of the year, enabling investors to immediately benefit from the acquisition.

The Wave 4 transaction, valued at approximately P16.2 billion, involves the infusion of nine office buildings with a combined gross leasable area (GLA) of about 165,500 square meters, all located within Megaworld’s fully integrated McKinley Hill township. The transaction will be carried out through a property-for-share swap amounting to P16,029,600,000, with the remaining balance of P187,500,000 in cash.

These assets are anchored by high-quality multinational tenants and feature a strong occupancy rate of 97% as of end-2025. More than 80% of the portfolio is leased to Global Capability Center (GCC) tenants, which are typically characterized by long-term mandates, deeper operational integration, and lower relocation risk.

The acquisition will significantly expand MREIT’s portfolio scale, increasing its gross leasable area by approximately 34% to around 647,000 sqm, while further strengthening the quality and stability of its tenant base.

“This approval marks another important milestone in MREIT’s growth journey,” said Kevin L. Tan, Chairman of MREIT, Inc. “Wave 4 represents a key step in scaling the platform while maintaining our focus on disciplined and accretive expansion.”

The Wave 4 transaction was announced in December 2025 and was executed at a 15% premium to MREIT’s 30-day volume-weighted average price (VWAP), reflecting the quality of the assets and the strength of the underlying tenant profile. This structure minimizes dilution to existing shareholders and provides additional room for MREIT to grow its dividends per share.

Following the completion of Wave 4, MREIT is preparing for its next round of asset infusions, Wave 5, which is expected to begin the company’s diversification into retail properties, starting with several mall assets targeted for the second half of the year. Subject to due diligence, valuation, and regulatory approvals, this next wave of acquisitions is expected to further expand the company’s portfolio and broaden its asset mix beyond offices.

Wave 5 is targeted to bring MREIT’s portfolio scale to approximately 750,000 square meters of gross leasable area, marking another step toward the company’s target of one million square meters of GLA by 2027.

MREIT’s visible expansion pipeline is supported by Megaworld’s extensive pipeline of stabilized, income-generating properties and reinforced by the broader property portfolio within Alliance Global Group, providing the company with a strong sponsor-backed platform for continued growth.