Andrew Tan’s REIT posts 18% rise in distributable net income

 

MREIT, the real estate investment trust of ultra bilyonaryo Andrew Tan’s Megaworld Corp., chalked up distributable income of P639 million in the first quarter, up 18 percent on new contributions from recent acquisitions.

The company reported a net income of P687.2 million on the back of P901.6 million in revenues.

Last December, four income-generating properties valued at P9.1 billion were infused into MREIT. This expanded MREIT’s portfolio GLA by 25 percent from 224,000 square meters during its initial public offering to 280,000 sqm with occupancy rate averaging at 96 percent, with five office assets registering 100 percent occupancy.

As of end-March, the company’s portfolio value stood at P59.3 billion

“Our solid performance in the first quarter of 2022 affirms our efforts to sustain MREIT’s growth via a combination of organic and inorganic means. The combination of rent escalation, steady occupancy, and implementation of our acquisition plans puts us on track to deliver on our targeted returns for our shareholders in 2022,” said Kevin L. Tan, president and CEO of MREIT.

The company plans to declare dividends amounting to P1 per share this year, six percent higher than the original plan.

MREIT said an additional four prime properties worth P5.3 billion will be added to its investment portfolio. Once completed, the acquisition will boost MREIT’s portfolio GLA by 16 percent to 325,000 sqm.

SOURCE: Bilyonaryo

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Andrew Tan’s leisure unit bounces back with positive growth numbers: GERI posts P1.3B earnings in 2021

The leisure estate development arm of ultra bilyonaryo Andrew Tan, Global-Estate Resorts Inc. (GERI) swung back to positive territory with profit rising 21 percent to P1.3 billion last year.

Consolidated revenues, however, declined to P5 billion from P5.2 billion even as real estate sales increased by three percent to P3.7 billion amid strong demand for leisure developments.

Reservation sales grew by 25 percent to P17.2 billion with Boracay Newcoast accounting for the biggest chunk of the company’s property sales with P4.1 billion worth of projects sold in 2021.

This was followed closely by Eastland Heights and Alabang West, which chalked up sales of P3.6 billion and P3.4 billion, respectively.

Also boosting sales were Arden Botanical Estate, Southwoods City, and Twin Lakes with a combined contribution of P5 billion.

“For 2021, we continued to capitalize on the strong demand for properties in the provinces. Aside from the intrinsic attractiveness of owning a place that allows you to commune more closely with nature, the past couple of years also highlighted the potential of owning real estate as an investment. In fact, the underlying land values for our offerings continued to appreciate at a brisk pace in spite of the pandemic,” said Monica T. Salomon, president of GERI.

Leasing leasing revenues, on the other hand, declined by 34 percent to P409 million as consumer confidence remained subdued for the majority of 2021.

Revenue from hotel operations also decreased by 27 percent to P146 million in 2021 owing to travel restrictions. 

SOURCE:Bilyonaryo

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Andrew Tan’s Megaworld swings to positive growth, earns P13.4B profit in 2021

Megaworld Corp., the property arm of bilyonaryo Andrew Tan, returned to familiar ground with a 36 percent jump in profit last year.

In a statement, Megaworld said net earnings rose to P13.4 billion last year from P9.9 billion in 2020 as all core businesses registered double digit growth.

Consolidated revenues grew 17 percent to P50.8 billion on strong sales. Real estate sales climbed by 25 percent to P31.1 billion as construction activities picked up during the year.

Reservation sales increased by 17 percent to P80 billion,.

“There has been a huge demand for titled lots, from both our residential and commercial offerings last year. We can see this trend to continue even this year,” said Kevin L. Tan, chief strategy officer at Megaworld.

The office segment saw rental income soar to an all-time high of P11.1 billion, closing around 236,000 square meters of new and renewal transactions.

Megaworld Lifestyle Malls, on the other hand, continued to feel the pandemic’s pinch as rental income fell 10 percent to P2.3 billion amid the lockdowns imposed during the year to curb the virus.

Meanwhile, revenues from the hotel business grew 30 percent to P1.9 billion due to the consistent performance of the company’s in-city hotels and the opening of Kingsford Hotel in the company’s Westside City township within the Entertainment City.

“In 2021, we shifted gears from pandemic management to restarting our growth trajectory, and our initiatives on this front have begun to bear fruit. As our numbers have shown, all our business segments registered significant improvements, even as we continue to provide assistance to ensure the recovery of our various stakeholders,” Tan said.

SOURCE: Bilyonaryo

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Andrew Tan’s MREIT books P2B profit in first 6 months of operations

 Megaworld-backed MREIT Inc. posted a net income of P2 billion in the six months ending December last year, boosted by a fair value gain on investment properties worth P702 million.

Revenues rose five percent to P1.5 billion.

Given its robust performance, the company has approved the declaration of dividends amounting to 24 centavos per share for the fourth quarter of 2021. This brings the total dividends declared by MREIT last year to 48 centavos per share.

The dividends shall be payable on March 31 to shareholders on record as of March 18.

“We are pleased with the accomplishments of MREIT to date and are thankful for all the support that we have received from our shareholders, as evidenced by the strong performance of MREIT shares in the bourse. We aim to build on this momentum as we embark on our expanded acquisition plan this year,” said Kevin L. Tan, president and CEO of MREIT.

MREIT is looking to acquire up to P20 billion worth of office assets, which will expand its gross leasable area to around 500,000 square meters by the end of 2023 and achieve an annual total shareholder return of at least 10 percent via organic growth and new acquisitions.

“We also want to look at opportunities to expand our portfolio footprint to Megaworld’s other townships,” Tan said.

MREIT plans to eventually expand its portfolio GLA to one million sqm before the end of the decade as part of its goal to be one of the largest office REITs in Southeast Asia.

SOURCE: Bilyonaryo

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Andrew Tan strikes deal with Boy Reyno to buy P1.9B Manila Jockey lot

Bilyonaryo Andrew Tan is further expanding Megaworld Corp.’s presence in Manila with the planned purchase of a 2.2 hectare property owned by Manila Jockey Club Inc. of the Reyno family for P1.89 billion.

In separate filings with the stock exchange, Megaworld and Manila Jockey said they signed a memorandum of agreement with respect to the sale of certain parcels of land in Sta. Cruz, Manila.

Manila Jockey said the transaction is subject to the submission of closing documents

The property, which forms part of the historic 16-hectare San Lazaro Tourism and Business Park in the northern part of Manila, is seen to boost Megaworld’s revenue stream and client base.

“Currently, our big projects in the City of Manila are concentrated in Binondo district, particularly within our Lucky Chinatown project where we have a lifestyle mall, condominium towers, a cultural museum, and a hotel. When we finalize the purchase of this land in San Lazaro, this will surely be part of our township portfolio expansion in Metro Manila,” said Kevin L. Tan, chief strategy officer at Megaworld.

Megaworld has around 300 hectares of land bank across the National Capital Region covering nine integrated urban townships and lifestyle estates in Quezon City, Taguig City, Pasay City, Parañaque City, Las Piñas City, Pasig City, and the City of Manila.

In total, the company has close to 5,000 hectares of land bank across the Philippines.

SOURCE: Bilyonaryo

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Andrew Tan’s MREIT to invest in townships, logistics

The real estate investment trust (REIT) of bilyonaryo Andrew Tan’s Megaworld Corp. is diversifying its portfolio to include townships as well as industrial and logistics properties.

In its three-year growth plan submitted to securities regulators, MREIT said it was looking at investing in other real property sectors that meet its investment criteria for Grade A, centrally-located, stably occupied, and income-producing properties.

MREIT aims to deliver an annual total shareholder return of at least 10 percent through organic growth and new acquisitions.

In selecting assets for future investments, MREIT said the potential property should be located in a prime location in either Metro Manila or key provinces in the Philippines.

Acquisitions will be funded either through debt or equity or a combination of both.

The company currently carries minimal debt at 12.4 percent of deposited properties, well below the aggregate leverage limit of 35 percent which may be further increased to 70 percent for REIT companies that have a publicly disclosed investment grade credit rating by a duly accredited or internationally recognized rating agency.

MREIT’s property portfolio is currently valued at P58.5 billion with the infusion of four prime office buildings in Philippine Economic Zone Authority-registered zones. These include Two Techno Place, Three Techno Place and One Global Center, which are all located in Iloilo Business Park, and World Finance Plaza in Mckinley Hill in Fort Bonifacio.

 SOURCE: Bilyonaryo

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Andrew Tan prepping for tourism’s rebound: Megaworld selling P5B worth of boutique hotel, commercial lots in Palawan

Megaworld is eyeing to generate around P5 billion from the sale of lots in its planned Mercato Shophouse and Porto Hotel District in San Vicente, Palawan.

Located within Megaworld’s P40 billion eco-tourism township in the Paragua Coastown, the master-planned Mercato Shophouse District and the Porto Hotel District is offering to the public 240 lots ranging from 250 to 599 square meters for shophouses, and 450 to 1,199 sqm for boutique hotels.

Both Mercato Shophouse District and Porto Hotel District are interconnected to each other, providing convenient walkability through expansive sidewalks and bridges.

“Our eco-tourism township offers businesses and entrepreneurs such as hotel owners, restaurateurs, coffee shop and bar operators, and retail shop owners to own land in San Vicente, particularly inside our master-planned beachside development,” said JR Abusta, head of sales and marketing at Megaworld Palawan.

Abusta said the district would have close access to the coastline of Long Beach Area of San Vicente, which has been designated as a Tourism Enterprise Zone (TEZ) of the Tourism Infrastructure and
Enterprise Zone Authority (TIEZA).

TIEZA’s Tourism Enterprise Zones have special incentives for tourism-related businesses such as tax holidays.

Among the first developments in the area include medical and wellness facilities, church, and other leisure and institutional amenities.

“We will definitely have unique residential and recreational offerings inside Paragua Coastown as well. What we are building here will hopefully help San Vicente become the most popular eco-
tourism spot in Palawan and the entire country. But of course, we give utmost importance to sustainable real estate because this is what everyone will be looking for when they decide to invest in Palawan,” said Abustan.

SOURCE: Bilyonaryo

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Andrew Tan’s office buildings see upswing in demand in first 9 months

As cities spring back to life following the easing of movement restrictions, bilyonaryo Andrew Tan’s property arm Megaworld Corp. has seen a surge in office takeups.

Megaworld’s office take-up accelerated in the first nine months of the year to 214,000 square meters or 12 percent above the company’s conservative target of 191,000 sqm.

Around 79 percent of the new lease contracts booked came from the IT-BPM (information technology and business process management) sector.

Megaworld said about 36 percent of the new signups was mostly in Uptown Bonifacio, McKinley Hill, Southwoods City and Davao Park District.

“It is exciting to note that several tenants opted to retain their spaces, and even expanded during the pandemic. The demand still remains despite earlier speculations that the work-from-home arrangements will lead to massive vacancies,” said Roland Tiongson, first vice president at Megaworld Premier Offices.

“With the eased restrictions and the re-opening of our borders for international travelers, we are optimistic that we will be able to achieve a better full-year performance of our office leasing business this year,” Tiongson added.

Megaworld claims to be the largest office landlord in the country with around 1.4 million square meters of leasable office space inventory.

It has PEZA-accredited office properties in its various integrated urban townships nationwide such as Eastwood City in Quezon City; Uptown Bonifacio, McKinley Hill, and McKinley West in Taguig City; Iloilo Business Park in Iloilo City; Davao Park District in Lanang, Davao City; Southwoods City in Biñan, Laguna; The Mactan Newtown in Cebu and Arcovia City in Pasig City.

SOURCE: Bilyonaryo

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Frederick Go’s RLC still biggest REIT IPO after Megaworld lowers MREIT offer

Megaworld-sponsored MREIT Inc. cut the size of its initial public offering by nearly a quarter and priced it below the P22 maximum price indicated in its IPO filing.

Megaworld-sponsored MREIT Inc. cut the size of its initial public offering by nearly a quarter and priced it below the P22 maximum price indicated in its IPO filing.

In a disclosure to the stock exchange, Megaworld said MREIT priced its IPO at P16.10 per share to raise as much as P15.3 billion or just 56 percent of its initial target of P27.3 billion.

This is 53 percent lower than the P23.5 billion offer of Robinsons Land Corp.’s REIT, the largest so far in terms of market capitalization, portfolio valuation and asset size.

MREIT will now offer up to 949.84 million shares to the public including an over allotment option of up to 105.54 million shares.

It will be the fifth REIT to list on the exchange after AREIT, DDMP REIT, Filinvest REIT and RL Commercial REIT.

The offer period will run from Sept. 14 to 20 while the company’s shares will start trading on Sept. 30.

SOURCE: Bilyonaryo

 

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GERI zooms up nearly 50% as Andrew Tan forges ahead with plan to build ‘tiny’ casino in Boracay

Global-Estate Resorts, Inc. (GERI) nearly hit the ceiling as local investors placed their bets on bilyonaryo Andrew Tan’s plan to put up a casino in its Boracay Newcoast estate.

GERI jumped 46 percent to P1.33, its highest in two years, on P80 million turnover.

Investors were excited by Tan’s announcement that GERI would proceed with its long-delayed casino project in Boracay a day after President Rodrigo Duterte lifted the ban on the island.

“We already have several hotels there and we are still building more. There is also a golf course (Fairways & Bluewater), the only one in the entire Boracay Island. We are very hopeful that the tourism industry in this island will recover fast after the pandemic,” said Tan in a statement.

But a GERI insider clarified that the planned casino would occupy less than a hectare of the 150-hectare estate and it would not even be its main attraction.

Newcoast has two hotels in operation – Savoy and Belmont – and is building a new one, Chancellor.

GERI is developing an exclusive residential village and commercial and retail districts in the township project. It has allocated 60 percent of the estate for green and open spaces.

GERI sold P4.22 billion worth of Newcoast Village lots and condominium units in 2020.

 SOURCE:Bilyonaryo

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New king rising: Andrew Tan is the country’s biggest office builder, landlord – Leechiu

Bilyonaryo Andrew Tan’s Megaworld (MEG) has taken the lead among property giants in the highly competitive office market.

Leechiu Property Consultants has crowned Megaworld as the largest office developer and owner in the Philippines with over 1.4 million square meters in its inventory.

Megaworld has around 70 office buildings across the country which serves more than 300,000 business process outsourcing (BPO) and traditional office workers.

In BGC alone, Megaworld has more than 900,000 square meters of office space with more than half in McKinley Hill and McKinley West while the remaining 400,000 sqm in Uptown Bonifacio.

Megaworld’s McKinley West township is home to the regional corporate headquarters of US-based global providers of integrated financial information, analytical applications, and other industry services in a P3 billion, 17-storey, LEED-certified office tower.

In McKinley Hill, American financial services titan Wells Fargo has its lone global business services headquarters in the country in a LEED Platinum-certified (for interior fit-outs), and LEED-Gold certified (for shell and core) building.

In its fast-rising Iloilo business park, Megaworld has captured 70 percent of the office market share with its nine office buildings (with a gross land area of 100,000 square meters) fully leased even amid the pandemic and the work-from-home trend.

Megaworld is close to finishing the 25-storey, build-to-suit Philippine Global Service Center of JP Morgan Chase Bank, the leading global banking and financial services provider, in Uptown Bonifacio.

The JP Morgan contract is the single largest office lease contract in terms of value.

Megaworld has kept its Eastwood City happy throughout the pandemic as anchor tenants IBM, Accenture, and NTT Data (formerly Dell) have stayed put after 1o to 20 years in the township.

 SOURCE: Bilyonaryo

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PH’s biggest REIT IPO: Andrew Tan revs up for Megaworld unit’s P27.3B public offering

Megaworld Corp. has applied for an initial public offering of a real estate investment trust (REIT) that could raise as much as P27.3 billion.

MREIT Inc., a subsidiary of bilyonaryo Andrew Tan’s Megaworld, plans to offer up to 1.239 billion shares at a maximum price of P22 each, according to the registration statement filed with the Securities and Exchange Commission.

Assuming full exercise of the overallotment option, the IPO will fetch P27.3 billion, making it the largest share sale in the country.

The shares to be sold represent up to 49% of the total issued and outstanding shares of MREIT, which will have a portfolio of 10 office, retail and hotel assets with an aggregate gross leasable area of 224,430.80 square meters, located in Megaworld’s major townships.

Proceeds from the offer will be used to fund 16 projects across the country.

“Our REIT includes properties in three of our most sought-after premier township developments of Eastwood City, McKinley Hill, and Iloilo Business Park, which are home to around 200,000 BPO and other office workers today.

Our ‘tried-and-tested’ signature concept of the township has attracted over 200 BPO and multinational companies to locate with us through the years since we started our first-ever Eastwood cyberpark in 1999,” said Kevin L. Tan, president and CEO of MREIT, Inc.

The assets to be injected into MREIT include 1800 Eastwood Avenue, 1880 Eastwood Avenue, E-Commerce Plaza, One World Square, Two World Square, Three World Square, 8/10 Upper McKinley, 18/20 Upper McKinley, One Techno Place, Richmonde Tower and Richmonde Hotel Iloilo.

BDO Capital & Investment Corp., Credit Suisse (Singapore) Ltd., UBS AG Singapore Branch, and DBS Bank Ltd., are the joint global coordinators for the IPO while BDO Capital will serve as domestic lead underwriter.

According to Leechiu Property Consultants, Megaworld currently has the largest portfolio of leasable office spaces in the Philippines, with around 1.4 million sqm of office properties in 10 major cities across the country.

It also holds the largest office leasable properties in the entire Bonifacio Global City, the country’s fastest growing business district today.

Revenues from office lease operations reached P10.4 billion last year, making it the ‘most stable’ income generator for the company despite the global pandemic.

 SOURCE: Bilyonaryo

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Andrew Tan strengthens rental portfolio, to add 21 new office, commercial buildings

Megaworld Corp. is beefing up its rental inventory with the construction of 15 office buildings, five lifestyle malls and a new hotel in Mactan, Cebu.

“These are all big-ticket projects that we want to pursue as we look forward to full recovery in our economy, and the return of consumer confidence to normalcy,” said Kevin Tan, chief strategy officer at Megaworld.

The new office projects will rise in Uptown Bonifacio and McKinley West in Taguig City, Arcovia City in Pasig City, Iloilo Business Park in Iloilo City, The Upper East in Bacolod City, Capital Town in Pampanga, The Mactan Newtown in Cebu, and Davao Park District in Davao City.

The five malls include The Upper East and Northill Gateway in Bacolod, Capital Town in Pampanga, Maple Grove in Cavite, Highland City in Rizal.

Tan said these new developments, located across Megaworld’s 11 townships in the country, would further expand the group’s rental income portfolio.

Megaworld chairman and CEO Andrew L. Tan said the company is ready to seize opportunities on new consumer demands.

“We have numerous opportunities to explore in our growth pipeline, and we are prepared to take them on. We foresee continued robust demand for horizontal developments, and leisure and tourism estates, as people look for havens for rest and rejuvenation.

Demand for warehouses and logistics hubs should also increase, and we believe that our townships can easily cater to this need given their strategic locations,” the Megaworld founder said.

 SOURCE: Bilyonaryo

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Andrew Tan’s Megaworld reigns supreme in Iloilo office market

The Andrew Tan-led company reigned as king of large leases with a total leasable office portfolio of 100,000 square meters in nine completed towers within its 72-hectare Iloilo Business Park.

These office towers include One Techno Place, Two Techno Place, Three Techno Place, One Global Center, Two Global Center, Festive Walk 1B, Richmonde Tower, One Fintech Place,and Two Fintech Place.

Megaworld said all office towers are 100% occupied by mostly business process outsourcing (BPO) companies catering to healthcare, insurance and finance, security and customer service,

“In the middle of the strict lockdowns last year, we have received inquiries for available office spaces in Iloilo Business Park. Quite a number of our existing clients in Metro Manila have had strong interests about expanding in Iloilo. And they were very particular about being inside Iloilo Business Park,” said Roland Tiongson, first vice president, Megaworld Premier Offices

Last year alone, Megaworld closed lease deals with seven companies involving almost 28,000 square meters of office space.

“This is now the brightest spot in our office leasing business, and we are very happy that our Iloilo township has been an attractive location to many multinational companies,” Tiongson said.

To cement its position in the sector, Megaworld is building the 12-storey Enterprise One, which is envisioned to be the tallest office tower in the Iloilo township once completed by 2023.

 SOURCE: Bilyonaryo

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