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Real estate industry

Megaworld Corp. Raises P2.24 Billion with Block Sale of MREIT Shares

Strategic Insights

— 2 min read

Property developer Megaworld Corp., led by Andrew Tan, has conducted a block sale of its common shares in MREIT Inc., raising P2.24 billion. The company sold 168.63 million common shares at a price of P13.28 each, which is a 4.46-percent discount from MREIT's closing price of P13.90 each on Wednesday. The proceeds from the sale will be settled on Friday, September 19, and will be used to reinvest in the company's assets. This move is expected to increase the public ownership level of MREIT to 40 percent once the sale is settled.

Key Takeaways:

  • Megaworld Corp. sold 168.63 million common shares of MREIT Inc. at P13.28 each, raising P2.24 billion through the block sale.
  • The selling price is a 4.46-percent discount from MREIT's closing price of P13.90 each on Wednesday.
  • The proceeds from the sale will be used to reinvest in the company's assets, with the reinvestment plan to be submitted to the exchange.
  • The block sale was conducted with the help of Maybank Securities, BDO Securities, First Metro Securities, and RCBC Securities.
  • The sale is expected to raise MREIT's public ownership level to 40 percent once it is settled.
  • MREIT has 24 offices in its portfolio spread across Megaworld's townships, including Eastwood City, McKinley Hill, McKinley West, Iloilo Business Park, and Davao Park District.
  • MREIT's distributable income surged by 26 percent to P1.86 billion in the first six months of the year.
  • MREIT's revenues increased by 28 percent to P2.7 billion in the same period.

Statistics:

  • P2.24 billion: The amount raised by Megaworld Corp. through the block sale of MREIT shares.
  • 168.63 million: The number of common shares sold by Megaworld Corp. in the block sale.
  • P13.28: The price per share at which Megaworld Corp. sold MREIT shares.
  • 4.46 percent: The discount from MREIT's closing price on Wednesday.
  • 40 percent: The increased public ownership level of MREIT after the sale is settled.
  • P1.86 billion: MREIT's distributable income in the first six months of the year.
  • 26 percent: The increase in MREIT's distributable income.
  • P2.7 billion: MREIT's revenues in the first six months of the year.
  • 28 percent: The increase in MREIT's revenues.

Sources:

  • "Megaworld Corp. raises P2.24 billion with block sale of MREIT shares" by Business Mirror, [no date].
  • "MREIT speeds up goal of reaching 1 million sqm of GLA by 2027" by BusinessWorld, [no date].
  • "MREIT posts 26% jump in distributable income in first half" by Manila Standard, [no date].

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