Major real estate firm aims for 1M sqm portfolio by 2027

MREIT Inc., the real estate investment trust sponsored by Megaworld Corp., is accelerating its growth strategy as it prepares for more waves of asset infusions aimed at doubling its current portfolio by 2027.

At the Philippine Stock Exchange STAR Investor Day, MREIT Investor Relations Head Andy Dela Cruz said the company is targeting about 520,000 square meters of additional gross leasable area (GLA) over the next two years to bring its portfolio to one million square meters.

“It’s two years until 2027, and we plan to do an additional 500,000 square meters more. We will do maybe two or three waves of acquisitions by then, and that will already give you an idea of how big an acquisition we will do,” Dela Cruz said, noting that mall and retail assets will form part of the upcoming infusions.

The company is currently raising its authorized capital stock by 60 percent to %u20B18 billion from %u20B15 billion to facilitate future property-for-share swaps with Megaworld. “The capital hike is definitely to open up MREIT’s capacity to do again a property-for-share swap,” Dela Cruz said, citing tax incentives as a key reason why share swaps remain the preferred acquisition mode.

MREIT is already conducting due diligence for its next batch of properties, with a target to reach 600,000 sqm by year-end. “We are already starting to look at retail assets. The goal of reaching one million square meters will definitely already include retail spaces,” Dela Cruz added.

The expansion push comes after Megaworld sold %u20B11.17 billion worth of MREIT shares last July in a block sale, unloading 84.8 million common shares, or about 2.3 percent of MREIT’s outstanding capital. The transaction was designed to make room for another property-for-share swap.

MREIT’s public float currently stands at 35.51 percent, slightly above the 33 percent minimum requirement for REITs. To infuse more assets into the trust while remaining compliant, Megaworld will need to continue adjusting its holdings by selling shares before introducing new property infusions.

The planned expansion highlights MREIT’s intent to establish itself among the country’s largest REITs, with a diversified portfolio that spans both office and retail spaces.