MREIT gets SEC nod for P27-billion Wave 5 asset infusion

MREIT, Inc. has secured SEC approval for its P27-billion Wave 5 property-for-share swap, which will add about 303,900 sq.m. of gross leasable area and lift assets under management to about P122 billion. The transaction brings income contributions effective 1 Jul 2026 and shifts the portfolio mix tow

MREIT, Inc. has secured Securities and Exchange Commission (SEC) approval for its P27-billion Wave 5 property-for-share swap, allowing the real estate investment trust (REIT) to proceed with the transaction. The REIT of Megaworld Corp. said in a statement on Tuesday that the asset infusion would bring its assets under management to about P122 billion upon completion.

MREIT said the properties covered by the transaction would begin contributing to its income effective 1 Jul 2026, following the SEC approval secured in the third quarter. Wave 5 will add about 303,900 square metres (sq.m.) of gross leasable area (GLA) to MREIT's portfolio, bringing its total GLA to more than 950,000 sq.m., the company said.

The transaction follows MREIT's P16.2-billion Wave 4 asset infusion, which was completed in the first quarter. The company said the two transactions would bring its asset infusions for the year to more than P43 billion.

The Wave 5 portfolio includes five malls with a combined GLA of about 160,200 sq.m.: Festive Walk Mall, Lucky Chinatown Mall, Venice Grand Canal Mall, Eastwood Mall, and Southwoods Mall. It also covers the 737-room Holiday Inn Express Manila Newport City and six office properties: Science Hub Tower 2, Venice Corporate Center, Six West Campus, One Paseo, Global One, and Horizon Center.

MREIT said the assets have a blended occupancy rate of 91% and a weighted average lease expiry of 5.3 years. Their combined valuation was based on a blended effective capitalisation rate of 7.8%, it added. The transaction would also change the composition of MREIT's portfolio, which was more than 95% office by GLA before the infusion, according to the company.

Upon completion, office properties would account for about 77% of GLA, while retail and hotel assets would make up about 20% and 3%, respectively, MREIT said. The asset infusion would also expand MREIT's presence to nine Megaworld townships from five. Shares to be issued under the transaction were priced at P16.50 each, which MREIT said represented an 18.6% premium to its 30-day volume-weighted average price before the board approved the transaction.

MREIT President and Chief Executive Officer Jose Arnulfo Batac said the company expects the transaction to increase dividends per share. “Wave 5 demonstrates MREIT's ability to translate the depth of Megaworld's sponsor pipeline into tangible shareholder value,” he said.

MREIT is also evaluating a possible Wave 6 asset infusion involving selected properties in Megaworld's Uptown Bonifacio township. The company said the proposed transaction remains subject to due diligence, valuation, corporate approvals, and regulatory clearances. MREIT expects its portfolio to exceed 1 million sq.m. of GLA by 2027.