Mreit Inc., the real estate investment trust (REIT) of Megaworld Corp., said it signed a deal with its sponsor to acquire 7 of its office assets in Taguig, Iloilo and in Davao, which recorded combined revenues of P1.2 billion last year.
These potential additions include Two West Campus, which has about 9,500 square meters and Ten West Campus, 36,400 sqm in McKinley Hill in Taguig; Science Hub Tower 3, 20,500 sqm and Science Hub Tower 4, 20,700 sqm in McKinley West; One Fintech Place, 18,200 sqm and Two Fintech Place, 18,100 sqm both in Iloilo Business Park; and Davao Finance Center, 27,100 sqm, in Davao Park District.
“These properties boast high average occupancy rate of 94 percent and quality tenants, marking a significant step towards our commitment to deliver sustained growth and value to our investors,” Kevin L. Tan, Mreit’s president and CEO, said on Thursday.
“Over the coming weeks, our team will work alongside our sponsor Megaworld to conduct comprehensive financial, legal, and technical due diligence to ensure the viability of the assets with a goal to execute definite agreements within the third quarter of the year. We look forward to finalizing Mreit’s next set of acquisitions soon.”
When the new properties being eyed by Mreit are completed, the company’s portfolio will grow to around 475,500 sqm, higher by 46 percent compared to the current 325,000 sqm. This brings Mreit closer to its target of 500,000 sqm of assets under management by end-2024.
Since its initial public offering in 2021, the company has already injected 8 office buildings into its portfolio and grew its value by 25 percent to P62 billion, following the 2 sets of previous acquisitions.
To date, Mreit’s portfolio covers 18 office properties in 4 Megaworld premier townships in Eastwood in Quezon City, Mckinley Hill and McKinley West both in Taguig and in Iloilo Business Park.
In April, the company reported that its income in 2022 more than doubled to P2.5 billion from the previous year’s P1.1 billion.
The company said it recorded revenues of P3.6 billion for the period, also higher compared to the previous year’s P1.5 billion.
In 2022, Mreit said it had an average occupancy of 96 percent.
