MREIT, Inc., the flagship real estate investment trust of Megaworld Corporation, has received formal approval from the Securities and Exchange Commission (SEC) for its “Wave 4” property-for-share swap transaction.
The approval, which arrived ahead of the company’s internal timeline, clears the way for MREIT to acquire nine Grade A office buildings in McKinley Hill, Taguig. This P16.2 billion infusion marks a significant milestone in MREIT’s aggressive expansion strategy, increasing its total Gross Leasable Area (GLA) by 34% to approximately 647,000 square meters.
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Asset Value: The acquisition is valued at P16.2 billion, structured primarily through a property-for-share swap of P16.03 billion, with a cash component of P187.5 million.
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Prime Portfolio: The infusion includes 165,500 sqm of GLA across nine office towers, boasting a 97% occupancy rate as of end-2025.
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High-Quality Tenants: Over 80% of the newly acquired space is occupied by Global Capability Centers (GCCs)—multinational tenants known for long-term lease mandates and low relocation risk.
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Immediate Accretion: Income from these assets will contribute retroactively from January 1, 2026, allowing shareholders to benefit from the increased cash flow immediately. “This approval marks another important milestone in MREIT’s growth journey,” said Kevin L. Tan, Chairman of MREIT, Inc. “Wave 4 represents a key step in scaling the platform while maintaining our focus on disciplined and accretive expansion.”
The transaction was executed at a 15% premium to MREIT’s 30-day volume-weighted average price (VWAP). This strategic pricing was designed to minimize shareholder dilution while maximizing the company’s ability to grow dividends per share.
Following the successful completion of Wave 4, MREIT is already looking toward Wave 5, which is slated for the second half of 2026. This next phase will signal a strategic shift as the company begins diversifying into retail properties, including several mall assets from Megaworld’s portfolio.
Wave 5 is projected to bring MREIT’s total GLA to 750,000 sqm, keeping the company firmly on track to hit its ultimate target of one million square meters by 2027. This growth is underpinned by a robust pipeline of stabilized, income-generating properties from Megaworld Corporation and the broader Alliance Global Group.
