LISTED real estate developer Megaworld Corp. sold P1.17 billion price of shares in its real estate investment trust, MREIT, Inc., through a block sale.
Megaworld sold 84.8 million common shares in MREIT at P13.82 per share on Friday, the true estate company said in a regulatory filing on Monday.
The offer price was at a reduction to MREIT’s share price of P14.18 per share on Friday.
Megaworld tapped Maybank Securities, Inc. and BDO Securities as brokers for the transaction.
The block sale proceeds might be settled on Tuesday.
“The corporate will submit the required reinvestment plan detailing the usage of proceeds from the block sale transaction,” Megaworld said.
Unicapital Securities, Inc. Research Head Wendy B. Estacio-Cruz said in a Viber message that the transaction signals a possible asset infusion by Megaworld into MREIT within the second half of the 12 months in support of the latter’s plan to expand its portfolio.
“(MREIT’s) sponsor, Megaworld, has a sturdy project pipeline and fully owned retail and hotel developments, which can function potential acquisitions for MREIT moving forward. Its upcoming asset infusions are expected to follow a goal mixture of 80% office and 20% retail properties,” she said.
MREIT grew its gross leasable area (GLA) to 482,000 square meters (sq.m.) after its third wave of asset acquisitions last 12 months.
The corporate’s portfolio comprises 24 prime office properties across five Megaworld townships: Eastwood City, McKinley Hill, McKinley West, Iloilo Business Park, and Davao Park District.
MREIT previously said that it’s on target to grow its GLA to 600,000 sq.m. by yearend to support its goal of reaching 1 million sq.m. of GLA by 2030.
On Monday, Megaworld shares rose by 0.5% or one centavo to P2.03 apiece, while MREIT shares increased by 0.14% or two centavos to P14.20 per share. — Revin Mikhael D. Ochave