Megaworld raises P980 million from sale of MREIT shares

MANILA, Philippines — Real estate giant Megaworld Corp. raised P980.32 million after unloading more shares in real estate investment trust company MREIT Inc.

In a stock exchange filing, Megaworld said it sold 79.7 million common shares of MREIT yesterday at an average price of P12.3001 apiece.

BDO Securities and Aurora Securities served as brokers for the transaction.

Megaworld said proceeds from the sale amounting to P980.32 million will be settled on June 5.

It will also submit a reinvestment plan to the stock exchange detailing the use of the proceeds from the transaction.

In April, Megaworld raised around P500 million after it sold 40.65 million common shares in MREIT at P12.30 apiece through a block sale transaction.

The transaction, which represented around 1.5 percent of MREIT’s total outstanding shares, garnered support from a reputable and long-term institutional investor, according to Megaworld.

MREIT last year signed a memorandum of understanding with its sponsor, Megaworld, for the possible acquisition of seven Grade A office assets.

The assets have a total gross leasable area (GLA) of 150,500 square meters.

Once completed, MREIT’s portfolio will grow to 475,500 sqm, 46 percent higher from its current 325,000 sqm.

MREIT is currently on track to expand its total GLA to 500,000 sqm by end-2024.