SEC clears MREIT’s P16.2-billion asset infusion ahead of schedule

MREIT, INC. (MREIT), the real estate investment trust of Megaworld Corp., has secured approval from the Securities and Exchange Commission (SEC) for its P16.2-billion “Wave 4” asset infusion.

The approval allows the company to proceed with the acquisition of nine Grade A office buildings, MREIT said in a statement on Thursday.

“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 Jan. 1 of the year, enabling investors to immediately benefit from the acquisition,” it said.

The transaction involves the infusion of office buildings in McKinley Hill, Taguig, with a combined gross leasable area (GLA) of about 165,500 square meters (sq.m.).

This will increase MREIT’s total GLA by about 34% to around 647,000 sq.m.

The deal was structured as a property-for-share swap valued at P16.03 billion, with the remaining balance of P187.5 million to be settled in cash.

The share swap was executed at a 15% premium to MREIT’s 30-day volume-weighted average price (VWAP), the company said.

“This structure minimizes dilution to existing shareholders and provides additional room for MREIT to grow its dividends per share.”

“This approval marks another important milestone in MREIT’s growth journey,” said Kevin L. Tan, chairman of MREIT.

“Wave 4 represents a key step in scaling the platform while maintaining our focus on disciplined and accretive expansion,” he added.

As of end-2025, the assets had an occupancy rate of 97%, with more than 80% leased to global capability center (GCC) tenants, according to the company.

Following the completion of Wave 4, MREIT said it is preparing for its next round of asset infusions, “Wave 5,” which is expected to include retail properties.

“Wave 5 is expected to begin the company’s diversification into retail properties, starting with several mall assets targeted for the second half of the year,” it said.

The company said the next phase could increase its portfolio to about 750,000 sq.m., as it targets one million sq.m. of GLA by 2027.

MREIT said its expansion pipeline is supported by Megaworld’s portfolio of income-generating properties and the broader assets of Alliance Global Group.

MREIT shares fell 1.03% to P13.50 per share on Thursday. — Alexandria Grace C. Magno