Megaworld Corp.’s REIT Aims for ₱27.3 Billion IPO

Megaworld Corp. is planning to sell a 49% stake in MREIT Inc., a business process outsourcing industry (BPO)-focused real estate investment trust (REIT) in an effort to raise somewhere around ₱27.3 billion. MREIT is also being groomed to be the largest REIT in terms of portfolio scale in Southeast Asia.

This could prove to have the potential to be the largest REIT initial public offering (IPO) in the local stock market if it achieves maximum size. It will overshadow AREIT Inc.’s ₱15.1-billion listing last year and DDMP REIT’s ₱14.7-billion stock debut last March. Likewise, it will also be bigger than other proposed REITs including RLC REIT’s P26.7-billion offering and Filinvest REIT’s planned P14.9-billion offering.

Around 1.239 billion of MREIT’s common shares, which includes the overallotment option, is expected to be offered at a maximum price of ₱22 apiece. This is based on the recent registration statement filed at the Securities and Exchange Commission, putting the base offer near ₱24 billion.

In its portfolio, MREIT will have 10 properties amounting to ₱55.6 billion and covering 224,430 square meters of leasable space in cyberpark pioneer Eastwood City in Quezon City, McKinley Hill in Taguig City, and Iloilo Business Park.

“We selected them for the quality of the buildings: the best in quality, best in class. We selected them for diversity, which includes the location, building types, the size. And we’ve also chosen only those with the best quality tenants, superior BPOs. There are no POGOs (Philippine offshore gaming operators), purely BPOs,” explained MREIT president Kevin Tan.

A REIT is a valuable asset class that allows investors the opportunity to invest directly in finished products that are already earning money like offices, hotels, shopping malls, and even infrastructure ventures including toll roads.

Source: Inquirer