Megaworld Corp. on Wednesday said it has submitted its registration papers to the Securities and Exchange Commission (SEC) for the initial public offering (IPO) of the company’s real estate investment trust (REIT).
Megaworld said its REIT, which will be called MREIT Inc., will sell secondary shares of up to 1.23 billion common shares at an offer price of P22 per share.
The offer is expected to raise gross proceeds of up to P27.3 billion, assuming full exercise of the overallotment option, which would be the biggest REIT offering in the Philippines to date. This would represent up to 49 percent of the total issued and outstanding shares of MREIT, assuming full exercise of the overallotment option.
Megaworld intends to reinvest the net proceeds from the offer in 16 projects all over the country.
Through a property-for-share swap, Megaworld injected into MREIT a portfolio of 10 office, retail and hotel assets with an aggregate gross leasable area of 224,430.80 square meters, located in three prime townships of Megaworld – Eastwood City in Quezon City, McKinley Hill in Taguig City and Iloilo Business Park in Mandurriao, Iloilo City.
MREIT portfolio of assets include 1800 Eastwood Avenue, 1880 Eastwood Avenue, E-Commerce Plaza, One World Square, Two World Square, Three World Square, 8/10 Upper McKinley, 18/20 Upper McKinley, One Techno Place, Richmonde Tower and Richmonde Hotel Iloilo.
“Our REIT includes properties in three of our most sought-after premier township developments of Eastwood City, McKinley Hill, and Iloilo Business Park, which are home to around 200,000 BPO and other office workers today. Our ‘tried-and-tested’ signature concept of the township has attracted over 200 BPO and multinational companies to locate with us through the years since we started our first-ever Eastwood cyberpark in 1999,” Kevin Andrew L. Tan, president and CEO of MREIT, said.
BDO Capital and Investment Corp., Credit Suisse (Singapore) Ltd., UBS AG Singapore Branch and DBS Bank Ltd., were mandated as joint global coordinators for the IPO and BDO Capital as domestic lead underwriter.