Megaworld Corp. Plans to raise up to 27.3 billion pesos ($568 million) from an initial public offering of its office unit in what would be the largest for a real estate investment trust in the Philippines. The company said its unit MREIT Inc has submitted a registration statement with the Securities and Exchange Commission for its real estate investment trust (REIT) initial public offering.
The nation’s largest office landlord will sell secondary shares of as many as 1.24 billion MREIT Inc. Common shares at up to 22 pesos each, said Kevin Tan, chief strategy officer at the Manila-based builder and president of the REIT.
The share sale reflects Megaworld’s resilience to the pandemic with ambitions for MREIT to become Southeast Asia’s biggest office REIT. The parent plans to inject more assets into the unit over time, Tan said. With over 1.4 million square meters in 70 office buildings, Megaworld has properties to bulk up MREIT, which is initially worth 55.6 billion pesos.
“Our goal is not just to be the largest REIT by portfolio size in the Philippines,” Tan says. “We intend to be the largest REIT by portfolio in Southeast Asia. We want to participate in a big way.”
Tan said its REIT offering is different since properties are focused on townships where tenants pay premium rent for township lifestyle. Townships, which have food outlets, medical facilities, outdoor spaces as well as condos, hotels, and dorms, are “incredibly efficient” model that has attracted over 200 BPO clients so far, he said.
We’re packaging entire ecosystem into the REIT, which makes it special, very different. During pandemic – township model really elevated itself,” Tan said.
Megaworld, the Andrew Tan-led company, currently has a portfolio of leasable spaces with around 1.4 million SQM of office property in 10 major cities in the country.