PROPERTY developer Megaworld Corp’s. real estate investment trust Mreit Inc. has extended the closing date of its acquisition of its sponsor’s seven assets to next May, exactly a year when it signed a memorandum of understanding (MOU).
The Megaworld properties are located in McKinley, Taguig City as well as those in Iloilo and Davao.
“By mutual agreement of the parties, and in accordance with Paragraphs B and F of the MOU, the conduct of the company’s financial, legal and technical due diligence [as well as the execution of the definitive agreements are mutually extended to May 31,] 2024,” Mreit said.
The company earlier eyed the third quarter this year as its closing date.
The potential additions include Two West Campus (9,500 square meters) and Ten West Campus (36,400 sq m) which are both in McKinley Hill; Science Hub-Tower 3 (20,500 sq m) and Science Hub-Tower 4 (20,700 sq m) in McKinley West; One Fintech Place (18,200 sq m) and Two Fintech Place (18,100 sq m) in Iloilo Business Park; and Davao Finance Center (27,100 sq m) in Davao Park District.
In aggregate, these assets generated rental income of P1.2 billion in 2022.
“These properties boast a high average occupancy rate of 94 percent and quality tenants, marking a significant step toward our commitment to deliver sustained growth and value to our investors,” the company’s president and Mreit CEO Kevin Andrew L. Tan earlier said. “Over the coming weeks, our team will work alongside our sponsor Megaworld Corp. 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.”
Tan added that “we look forward to finalizing his company’s next set of acquisitions soon.”
When the most recent acquisitions are concluded, Mreit’s portfolio will grow to around 475,500 sq.m.—higher by 46 percent compared to the current 325,000 sq. m.
This brings the company closer to its target of 500,000 sq. m. of assets under its management by the end of 2024.