<\/p>\n
MREIT, INC. said it’s on the right track to almost double its portfolio to about 1 million square meters (sq.m.) of gross leasable area because it pushes deeper into retail and hospitality assets through its biggest planned acquisition so far.<\/span><\/p>\n \u201cWe’re on the right track to achieve no less than 1 million sq.m., well ahead of our original timeline,\u201d MREIT President and Chief Executive Officer Jose Arnulfo C. Batac told the corporate\u2019s annual stockholders\u2019 meeting on May 29.<\/p>\n The expansion signals MREIT\u2019s broader strategy of reducing reliance on office assets as demand conditions evolve across the property sector.<\/span><\/p>\n Mr. Batac said the corporate\u2019s fourth wave of asset infusions expanded its portfolio to about 647,000 sq.m., while a memorandum of understanding signed with related parties covers one other pipeline of roughly 300,000 sq.m. of office, retail and hospitality properties.<\/span><\/p>\n \u201cThis alone would take us as near 950,000 sq.m., putting the 1 million sq.m. closely close by,\u201d he added.<\/p>\n MREIT on Friday announced the proposed acquisition of 12 business properties that might raise its gross leasable area to about 950,000 sq.m.<\/span><\/p>\n The deal covers about 303,500 sq.m. of office, retail and hospitality assets inside the Alliance Global Group, Inc. network and would mark the corporate\u2019s biggest single-asset acquisition.<\/p>\n The properties include Eastwood Mall in Quezon City, Venice Mall in Taguig City, Lucky Chinatown Mall in Manila, Festive Walk Mall in Iloilo City, and Southwoods Mall in Bi\u00f1an, Laguna.<\/span><\/p>\n Six office buildings are also included within the proposed transaction, alongside Holiday Inn Express Manila in Newport City.<\/span><\/p>\n MREIT said the acquisition would reshape its portfolio composition from greater than 95% office assets to about 77% office, 20% retail and three% hospitality assets.<\/p>\n \u201cFinal composition and timing stays subject to regulatory and company approvals, however the direction is obvious,\u201d Mr. Batac said.<\/p>\n \u201cWe’ve the pipeline, the sponsor support, and the institutional capability to execute, and we intend to deliver this growth on a disciplined, energetic basis,\u201d he added.<\/p>\n The corporate said hospitality properties included within the portfolio would operate under long-term leaseback arrangements to preserve predictable income streams.<\/p>\n \u201cFor hospitality, the assets will likely be fully leased back to the operator under long-term arrangements with built-in annual escalations,\u201d Mr. Batac said.<\/span><\/p>\n For retail assets, MREIT said it plans to depend on Megaworld Corp.\u2019s existing township leasing and property management operations.<\/p>\n The corporate also said it sees room to enhance operating efficiency across the incoming assets through tighter property management and renewable energy initiatives.<\/p>\n \u201cA lot of these assets within the pipeline are already mature and well occupied,\u201d Mr. Batac said.<\/p>\n \u201cOur focus will likely be on optimizing operating costs through tighter property management, energy and utility improvements, and the renewable energy transition we’ve already accomplished across our existing portfolio,\u201d he added. \u2014 Alexandria Grace C. Magno<\/b><\/span><\/p>\n<\/p><\/div>\n <\/p>\n","protected":false},"excerpt":{"rendered":" An aerial view of Metro Manila on this undated file photo. \u2014 PHILIPPINE STAR\/WALTER BOLLOZOS MREIT, INC. said it’s on the right track to almost double its portfolio to about 1 million square meters (sq.m.) of gross leasable area because it pushes deeper into retail and hospitality assets through its biggest planned acquisition so far. 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