MREIT to diversify asset portfolio

MANILA, Philippines —  MREIT Inc., the real estate investment trust of Andrew Tan’s real estate giant Megaworld Corp., plans to push through with the diversification of its portfolio this year with the addition of retail assets.

MREIT president and CEO Kevin Tan said the company is actively looking to diversify its assets beyond the office sector.

“Starting this year, MREIT plans to inject also retail assets. This strategic move provides shareholders with exposure to the strong performance of the retail sector and enhancing the company’s overall resilience and growth prospects,” Tan said during the company’s annual stockholders’ meeting yesterday.

In the long term, Tan said they are also studying other property types within the Megaworld portfolio that would bring value to MREIT.

“By broadening our portfolio to new investment types, this will ensure MREIT will have a balanced and diversified portfolio that can withstand various market dynamics,” he said.

MREIT’s portfolio currently covers 18 office properties located in four Megaworld premier townships.

Last month, MREIT announced that it would acquire six office properties with a total value of P13.15 billion.

The acquisition will increase MREIT’s portfolio by 48 percent to 482,000 square meters.

“These buildings are situated in prime Megaworld townships such as the McKinley West, Iloilo Business Park and Davao Park District. The acquisition is strategic move to reach our target of 500,000 square meters of gross leasable area by the end of 2024,” Tan said.

Tan added that the acquisition brings the company closer to its long-term goal of achieving one million square meters of gross leasable area before 2030.

“This acquisition not only enhances our portfolio but also strengthens our position in the market, allowing us to provide even more high-quality spaces to our tenants and to sustain our revenue growth,” he said.