Megaworld Corporation is transferring four more office buildings worth P5.3 billion to its real estate investment trust MREIT as the initial tranche of its P20 billion assets-for-shares swap planned for this year.
In a statement, Megaworld said the new acquisitions will have a total gross leasable area of 44,567 square meters, which will increase MREIT’s asset portfolio by 16 percent to 325,000 square meters GLA and boost portfolio value to P65 billion.
The property infusions include Festive Walk 1B and Two Global Center in Iloilo Business Park, and One West Campus and Five West Campus in McKinley West, Taguig City.
“This will be the first time that we infuse office assets from McKinley West… (which) commands one of the highest rental rates in the Greater Manila Area because of the high demand for office spaces in this area,” said MREIT President Kevin L. Tan.
While MREIT will have 100 percent ownership of the two Iloilo Business Park properties, it will only have an 80 percent economic interest in the two McKinley West office towers. At present, the four properties have an average occupancy rate of 96 percent.
The properties will be exchanged for 263.7 million MREIT shares at P20.00 per share representing a 1.4 percent premium over the volume weighted average closing price for a period of 40 trading days until Mar. 30, 2022, based on appraisal reports and third party fairness opinion.
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