MREIT to expand gross leasable area by 100K sqm

MANILA, Philippines — MREIT Inc., the real estate investment trust (REIT) of Megaworld Corp., is aiming to expand its gross leasable area (GLA) by 100,000 square meters by the end of the year.

This would bring MREIT to its goal of having a portfolio of 500,000 sqm GLA by 2024, said MREIT Inc. president and CEO Kevin Tan during the company’s annual stockholders meeting.

Tan said that at present, MREIT’s offices continue to attract tenants and are enjoying an occupancy rate of 96 percent, which is above the industry rate of 80 to 81 percent.

It is planning to acquire seven grade A office assets from Megaworld, its sponsor, which Tan said would further strengthen the company’s portfolio.

The assets, which have a combined gross leasable area of around 150,500 sqm, include the 9,500-sqm Two West Campus and the 36,400-sqm Ten West Campus in McKinley Hill; the 20,500-sqm Science Hub Tower 3 and 20,700-sqm Science Hub Tower 4 in McKinley West; the 18,200-sqm One Fintech Place and 18,100-sqm Two Fintech Place in Iloilo Business Park, and the 27,100-sqm Davao Finance Center in Davao Park District.

Last year, these assets generated P1.2 billion in rental income.

With this infusion, MREIT’s portfolio will grow to around 475,500 sqm, with the acquisition, higher by 46 percent compared to the current 325,000 sqm.

This also brings MREIT closer to its target of 500,000 sqm of assets under management by end 2024.

The company has already injected eight office buildings into its portfolio and grew its value by 25 percent to P62 billion, following the two sets of previous acquisitions.

To date, MREIT’s portfolio covers 18 office properties in four Megaworld premier townships including 1800 Eastwood Avenue, 1880 Eastwood Avenue, and E-Commerce Plaza in Eastwood City; One World Square and Two World Square.