Filipino billionaire Andrew Tan’s Megaworld injects record $437 million into real estate trust

The transaction, which includes 303,900 square meters of office space, retail properties and a hotel, will expand its company MREIT’s portfolio to 950,000 square meters, bringing it close to its 1 million-square-meter target for 2027, the Manila-based REIT said in a statement to the stock exchange, as reported by the Manila Bulletin.

Upon completion of the property-for-share swap, MREIT’s assets under management will increase to 122 billion pesos, subject to approval by the Securities and Exchange Commission.

Megaworld and two other Tan-owned companies will receive MREIT shares priced at 16.50 pesos each, representing an 18.6% premium to MREIT’s volume-weighted average price over the past 30 days.

“The transaction marks MREIT’s most significant diversification to date,” the trust said in the statement.

Among the properties being acquired are Eastwood Mall, located within Megaworld’s first township development in Quezon City, and the 737-room Holiday Inn Express Manila Newport City, adjacent to the country’s main airport, according to Forbes.

After the acquisition, MREIT’s portfolio will consist of approximately 77% office assets, 20% retail properties and the remainder a hotel. Office assets currently account for about 95% of its portfolio.

Tan, whose net worth is estimated at $1.8 billion according to Forbes’ real-time data, ranks among the Philippines’ wealthiest individuals. Through his flagship company, Alliance Global, he also has interests in Emperador, the world’s largest brandy producer, and the Philippine franchise operator of McDonald’s.