LISTED property developer Megaworld Corp. said it is allocating P3.4 billion from the proceeds of its recent block sale of shares in its real estate investment trust (REIT) unit MREIT, Inc. to expand its township projects in Bacolod, Cebu, and Palawan amid continued growth prospects in these areas.
In a stock exchange disclosure on Monday, Megaworld said the funds came from the sale of MREIT shares and will be reinvested in new income-generating assets, including office towers, lifestyle malls, and hotels within its key provincial estates.
Megaworld President and Chief Executive Officer Lourdes Gutierrez-Alfonso said the upcoming projects are expected to spur both tourism and business activity in their respective provinces.
“We hope to be able to expand our offerings that can generate more jobs and help boost tourism in these exciting destinations,” Ms. Gutierrez-Alfonso said.
Among the estates covered by the allocation is The Upper East in Bacolod, a 34-hectare modern business and lifestyle district built on a former sugar mill complex across the Bacolod City Government Center.
Megaworld has completed three residential condominiums and one office building in the area, with two more residential developments, another office tower, and one hotel under construction. The developer is also planning to begin construction of a mall within the township by next year.
Proceeds will likewise be used to expand The Mactan Newtown, a 30-hectare township in Lapu-Lapu City, Cebu, located along the province’s coastline and envisioned as a mixed-use business and leisure hub.
The development will feature a convention center catering to the meetings, incentives, conventions, and exhibitions market, as well as a multi-level museum commemorating the 1521 arrival of the Spanish in the Philippines.
Megaworld said four residential projects have been completed in The Mactan Newtown, while three more are under construction. The estate currently hosts five office towers and two hotels.
Meanwhile, a portion of the proceeds will also go to Paragua Coastown, Megaworld’s 462-hectare eco-tourism community in San Vicente, Palawan, which will include hotels, condominiums, residential villages, commercial districts, and nature parks.
In an earlier disclosure, Megaworld said it was allocating P845 million for Paragua Coastown, P830 million for The Mactan Newtown, and P537.92 million for The Upper East.
Last month, Megaworld raised P2.24 billion from a block sale of MREIT’s common shares, which it said would support possible future asset infusions into the REIT.
MREIT Chairman Kevin L. Tan said, “We look forward to the new income-generating assets that will be part of the potential future assets of MREIT, particularly the new malls and offices that will be built.”
“These projects will not only sustain MREIT’s expansion pipeline but also enhance its long-term earnings visibility and shareholder value,” he added.
MREIT earlier said it aims to expand its portfolio to one million square meters of gross leasable area (GLA) by 2027. The company reported a 26% increase in first-half distributable income to P1.86 billion, driven by a 28% rise in revenue to P2.7 billion.
At present, MREIT holds 24 prime office properties across five Megaworld townships — Eastwood City in Quezon City; McKinley Hill and McKinley West in Taguig; Iloilo Business Park in Iloilo City; and Davao Park District in Davao City.
On Monday, Megaworld shares closed flat at P2 each, while MREIT shares rose 1.16% or 16 centavos to P13.94 apiece. — Beatriz Marie D. Cruz
