Thursday, August 26, 2021

Kevin Tan’s vision: Build Megaworld REIT as biggest in Southeast Asia

Bilyonaryo Kevin Tan doesn’t think small.

As chief strategy officer of Megaworld Corp. (MEG), Tan wants his family’s real estate investment trust, MREIT, to be a giant not only in the Philippines but in the Southeast Asian region as well.

Tan expects MREIT to double its size in three years and reach one million square meters (sqm) within five to ten years.

“Our vision is to make MREIT the largest REIT in Southeast Asia in terms of floor area. MEG is now 1.4 million square meters in leasable office portfolio, which is among the biggest in Southeast Asia,” said Tan.

In comparison, Singapore’s largest office builder, Capitaland, has only 960,000 sqm GLA.

MREIT will primarily be an office play with a 10 percent retail share in the buildings portfolio.

Tan said MEG would only inject best-in-class Premium Grade A offices into MREIT.

MREIT’s initial portfolio includes 10 office buildings and a hotel with a gross leasable area of 225,000 sqm.

MEG is seeking to raise as much as P27.3 billion from MREIT’s initial public offering of up to 1.4 billion shares including an overallotment option at a maximum price of P22 each.

Excluding the greenshoe, the IPO will raise up to P23.7 billion which MEG plans to use to bankroll the construction of more office buildings, malls, and hotels.

The son of MEG founder Andrew Tan is hands-on in his role as MREIT president and CEO as he personally took charge in Zoom meetings with local and foreign investors. Along with DDMPR’s Ferdinand Sia, Tan is the only president among REITs with a direct stake in the business.

The 41-year old has big visions but has a micromanagement style in all his roles in the family business from CEO of Alliance Global Group to president of Infracorp Development to head of Agile Digital Ventures (which operates Pickaroo and Boozy apps).

 SOURCE: Bilyonaryo 

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