Insider Spotlight
The property giant said the capital will be reinvested into offices, malls, hotels and other recurring income-generating assets across its integrated developments, allowing it to keep building without relying solely on new debt or equity.
“Our townships are designed to grow holistically. As each estate matures, it creates new opportunities to introduce offices, malls, hotels, residences, and lifestyle destinations that reinforce one another and expand the value of the whole community," Megaworld president and CEO Lourdes Gutierrez-Alfonso said in a statement on Monday.
The fundraising comes ahead of MREIT’s fifth asset infusion, in which Megaworld will transfer another 303,500 square meters of completed, income-producing properties into the REIT.
The transaction will expand MREIT’s portfolio to more than 950,000 square meters, putting it within reach of its one-million-square-meter target ahead of 2027.
“MREIT’s next phase of growth goes beyond scale. Wave 5 expands the platform from an office-led portfolio into a broader township-backed REIT with a deeper mix of mall and hotel assets. This gives shareholders access to a wider range of recurring income streams generated within Megaworld’s integrated estates, where each component strengthens the others to drive long-term value creation,” Tan, the chair of MREIT, said in the same statement.
The expansion will also reduce MREIT’s dependence on office buildings by increasing its exposure to malls and hotels, diversifying the REIT’s sources of rental income.
Megaworld said the fresh capital will help fund projects in Metro Manila as well as township developments in Palawan, Pampanga, Bacolod, Cebu, Iloilo and Cavite as it works toward its goal of expanding its leasing portfolio to three million square meters by 2030.
—Edited by Miguel R. Camus
