Megaworld completes P1.32-B MREIT block sale

TAN-LED property developer Megaworld Corp. said it has finalized a P1.32-billion transaction on the sale of 98 million common shares in its real estate investment trust (REIT).

In a regulatory filing on Monday, Megaworld said it sold the 98 million common shares of MREIT, Inc. at P13.50 each under a block sale transaction. Proceeds from the sale are expected to be settled on Dec. 23. The company said it will submit a reinvestment plan outlining the use of proceeds from the transaction.

Aurora Securities and BDO Securities acted as brokers for the deal.

The sale comes as MREIT plans to acquire nine Grade A office buildings in Taguig City valued at P16.22 billion.

Megaworld recently announced plans to inject more office and retail assets into MREIT, which aims to expand its portfolio to one million square meters (sq.m.) of gross leasable area (GLA) by 2027.

In a separate disclosure, Megaworld said it also sold 900 million common shares in Suntrust Resort Holdings, Inc. through the open market at 60 centavos each. The shares represented a 12.41% stake in Suntrust.

Megaworld’s sister company, Travellers International Hotel Group, Inc., earlier gained majority control of the Westside Integrated Resort Project in Parañaque City through an agreement with Suntrust. The deal, announced in September, is intended to accelerate completion of the casino project, whose target opening has been moved to the third quarter of 2026.

AP Securities, Inc. Equity Research Analyst Shawn Ray R. Atienza said the sale of MREIT and Suntrust shares provides Megaworld with fresh funding for key projects.

“This could yield Megaworld with better returns and organically increase its valuation compared to the flat results produced by the listed companies in the market,” he said in a Viber message.

Megaworld earlier said it was looking to expand its portfolio to one million sq.m. of GLA by 2030.

Suntrust is a subsidiary of Fortune Noble Ltd., a unit of Hong Kong-listed LET Group Holdings Ltd.

Megaworld posted a 1.16% increase in third-quarter attributable net income to P5.23 billion, driven by sustained demand in its hotel and residential businesses.

Shares of Megaworld rose by 2.46% or five centavos to close at P2.08 each. — Beatriz Marie D. Cruz