spot_img
29 C
Philippines
Thursday, March 28, 2024

MREIT adds four office buildings worth P5.3b

- Advertisement -

MREIT Inc., the real estate investment trust company of Megaworld Corp., said Monday the Securities and Exchange Commission approved its P5.3-billion asset-for-share swap worth P5.3 billion.

MREIT said in a stock exchange filing the SEC approved its acquisition of four prime office buildings with gross leasable area of 44,567 square meters that would increase its asset portfolio by 16 percent to 325,000 sq. m.

These properties include Festive Walk 1B and Two Global Center in Iloilo Business Park and One West Campus and Five West Campus in McKinley West, Taguig City. As of end-2022, the four prime office properties had an average occupancy rate of 96 percent, above the industry level of 80 percent to 81 percent.

MREIT said that in exchange for the four office towers, it would issue 263.7 million primary common shares to Megaworld. The shares will be issued at P20 per share, which represents a 41-percent premium over MREIT’s price of P14.20 per share.

“The SEC approval of our property-for-share acquisition results in the recognition of income from the new assets by MREIT from Jan. 1, 2023, which will help drive our growth. The high occupancy rate of these buildings is a clear proof of the quality of our assets and their strategic locations,” said MREIT president and chief executive Kevin Tan.

- Advertisement -

LATEST NEWS

Popular Articles