MREIT, Inc. agreed to acquire 38% stake in 4 prime properties.
November 15, 2021
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MREIT, Inc. (PSE:MREIT) agreed to acquire 38% stake in 4 prime properties on November 16, 2021. To fund the investment, MREIT's Board also approved the closing of a 10-year term loan facility amounting to PHP 7.25 billion with a local bank and the remaining balance of the acquisition cost shall be paid using the company's existing cash. Cash payment is to be made by MREIT upon execution of the Deed of Absolute Sale (including a stake from its shareholder, Megaworld Corporation), PHP 1,920 million of which to be funded by cash, and PHP 7,196 million to be financed by the net proceeds from a loan from China Banking Corporation. The Board of Directors of MREIT, has unanimously approved the acquisition. Megaworld, is finalizing the acquisition of four prime, grade A, PEZA-accredited properties by December of this year. The acquisition of these prime assets will result in a 5.3% increase in expected dividends for calendar year 2022 from PHP 0.95 per share to PHP 1 per share.
MREIT, Inc. is a Philippines-based company, which operates as a real estate investment trust (REIT). The Company seeks to secure income growth and provide a competitive investment return to the investors through present and future portfolio. Its objectives are primarily to own and invest in income-producing commercial portfolio of office, retail, and hotel properties in the Philippines. The Companyâs investment properties include several buildings for mixed-use, which are being leased out as office, retail, and hotel, including the hotelâs parking spaces. The Company's properties include Eastwood City, Iloilo Business Park, and McKinley Hill. Iloilo Business Park is an integrated urban township in a 72-hectare property in the bustling district of Mandurriao, Iloilo City. McKinley Hill is an integrated urban township on 50 hectares of land inside Fort Bonifacio, a former military camp in Taguig City.
MREIT, INC. 
