Megaworld sells P1.17B worth of MREIT shares via block sale

LISTED real estate developer Megaworld Corp. sold P1.17 billion worth of shares in its real estate investment trust, MREIT, Inc., through a block sale.

Megaworld sold 84.8 million common shares in MREIT at P13.82 per share on Friday, the real estate company said in a regulatory filing on Monday.

The offer price was at a discount to MREIT’s share price of P14.18 per share on Friday.

Megaworld tapped Maybank Securities, Inc. and BDO Securities as brokers for the transaction.

The block sale proceeds will be settled on Tuesday.

“The company will submit the required reinvestment plan detailing the use of proceeds from the block sale transaction,” Megaworld said.

Unicapital Securities, Inc. Research Head Wendy B. Estacio-Cruz said in a Viber message that the transaction signals a possible asset infusion by Megaworld into MREIT in the second half of the year in support of the latter’s plan to expand its portfolio.

“(MREIT’s) sponsor, Megaworld, has a robust project pipeline and fully owned retail and hotel developments, which may serve as potential acquisitions for MREIT moving forward. Its upcoming asset infusions are expected to follow a target mix of 80% office and 20% retail properties,” she said.

MREIT grew its gross leasable area (GLA) to 482,000 square meters (sq.m.) after its third wave of asset acquisitions last year.

The company’s portfolio comprises 24 prime office properties across five Megaworld townships: Eastwood City, McKinley Hill, McKinley West, Iloilo Business Park, and Davao Park District.

MREIT previously said that it is on track to grow its GLA to 600,000 sq.m. by yearend to support its goal of reaching 1 million sq.m. of GLA by 2030.

On Monday, Megaworld shares rose by 0.5% or one centavo to P2.03 apiece, while MREIT shares increased by 0.14% or two centavos to P14.20 per share. — Revin Mikhael D. Ochave