LISTED MREIT, Inc., the real estate investment trust sponsored by Megaworld Corp., has filed with the Securities and Exchange Commission (SEC) to increase its authorized capital stock to P8 billion from P5 billion to P8 billion, following a memorandum of understanding with its sponsor.
In a disclosure to the stock exchange on Monday, MREIT said the increase, with a par value of P1 per share, is meant to support its growth by enabling the acquisition of additional income-generating assets.
Under the agreement, both parties will exchange shares involving certain Megaworld properties that qualify as MREIT’s target growth assets.
“MREIT intends to acquire the target growth assets to secure income growth and provide a competitive investment return to its shareholders,” the company said.
Megaworld will subscribe to 25% of the P3-billion increase, or P750 million in new shares, paying 25% of its subscription, equivalent to P187.5 million, as required by law. The subscription price will be at least P14.39 per share, higher than MREIT’s 30-day average market price.
In August, MREIT said the capital hike would accelerate its plan to reach one million square meters (sq.m.) of gross leasable area (GLA) by 2027, advancing the target by three years.
The company has said it plans to gradually infuse mall and retail assets into its portfolio to diversify holdings and capture growing consumer demand.
Currently, MREIT owns 24 prime office properties across five Megaworld townships, including Eastwood City in Quezon City, McKinley Hill and McKinley West in Taguig, Iloilo Business Park in Iloilo City, and Davao Park District in Davao City. Megaworld holds 1 million sq.m. of office GLA and 500,000 sq.m. of retail GLA that may be added to MREIT over time.
On Monday, MREIT shares slipped 0.14% or 2 centavos to P13.96, while Megaworld shares fell 0.51% or 1 centavo to P1.97. — Alexandria Grace C. Magno
