Kevin Tan bulks up MREIT’s portfolio with the infusion of P20B worth of office assets

 The real estate investment trust (REIT) unit of township developer Megaworld will see its portfolio expand to P78.5 billion this year with the infusion of P20 billion worth of office assets.

MREIT president Kevin Tan said these properties, which will come from various Megaworld townships across the country, have a multinational tenant base which include large financial, healthcare, technology and consulting firms.

“MREIT is looking to surpass its target for 2022 in terms of asset injection…We earlier announced an additional 44,300 square meters by end of the year, but we are working to further bulk it up with more assets as we continuously look for ways to increase dividend yields for our shareholders,” said Tan.

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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Kevin Tan pleased with Megaworld’s strong Q3 showing

Benefiting from the resurgence in demand for residential properties, Megaworld saw its third quarter net income surge 57% to P3.2 billion due to the easing of coronavirus restrictions.

This brings the company’s first nine months profit to P8.2 billion or an increase of 10 percent from the same period last year.

Consolidated revenues climbed by 50% to P14.5 billion in the third quarter, bringing Megaworld’s total revenues to P36.9 billion in the nine months to September.

“The recovery momentum has started to pick up and we hope that the lowering of the alert levels especially in Metro Manila will continue until the year-end. As more people safely go out and enjoy the normal life, the better for business and our economy as a whole,” said Kevin L. Tan, chief strategy officer of Megaworld.

Real estate sales led the recovery, more than doubling to P9.6 billion during the quarter amid the expansion in construction activities. The nine-month figure reached P23.1 billion, up 21 percent year on year.

Reservation sales grew 35 percent to P17.1 billion during the third quarter.

The hotels & resorts segment staged a strong recovery during the quarter as revenues grew 121 percent to P552 million with the opening of Kingsford Hotel in the company’s Westside City township along Manila Bay

Megaworld Premier Offices, meanwhile, saw flat rental earnings in the third quarter at P2.9 billion.

Its Lifestyle Malls, on the other hand, reported a 16 percent jump in rental income to P469 million.

SOURCE: Bilyonaryo

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Kevin Tan pleased with Megaworld’s strong Q3 showing

Benefiting from the resurgence in demand for residential properties, Megaworld saw its third quarter net income surge 57% to P3.2 billion due to the easing of coronavirus restrictions.

This brings the company’s first nine months profit to P8.2 billion or an increase of 10 percent from the same period last year.

Consolidated revenues climbed by 50% to P14.5 billion in the third quarter, bringing Megaworld’s total revenues to P36.9 billion in the nine months to September.

“The recovery momentum has started to pick up and we hope that the lowering of the alert levels especially in Metro Manila will continue until the year-end. As more people safely go out and enjoy the normal life, the better for business and our economy as a whole,” said Kevin L. Tan, chief strategy officer of Megaworld.

Real estate sales led the recovery, more than doubling to P9.6 billion during the quarter amid the expansion in construction activities. The nine-month figure reached P23.1 billion, up 21 percent year on year.

Reservation sales grew 35 percent to P17.1 billion during the third quarter.

The hotels & resorts segment staged a strong recovery during the quarter as revenues grew 121 percent to P552 million with the opening of Kingsford Hotel in the company’s Westside City township along Manila Bay.

Megaworld Premier Offices, meanwhile, saw flat rental earnings in the third quarter at P2.9 billion.

Its Lifestyle Malls, on the other hand, reported a 16 percent jump in rental income to P469 million.

 SOURCE: Bilyonaryo

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Overwhelming response: MREIT IPO attracts steady stream of investors

The initial public offering of Megaworld-sponsored MREIT Inc. is shaping up to be a big success.
In an interview with ANC, BDO Capital president Ed Francisco said the IPO has received an overwhelming response from some of the world’s largest fund managers and high net worth individuals.

In an interview with ANC, BDO Capital president Ed Francisco said the IPO has received an overwhelming response from some of the world’s largest fund managers and high net worth individuals.

Francisco said the decision to downsize the offering and IPO price was warmly welcomed by investors as orders kept pouring in. The IPO is already two times oversubscribed and could generate even more investor demand.

“We spoke to the big funds, and basically, the big funds and high net worth investors of these funds were the ones who ordered. No final numbers yet. But, we were looking at least in the foreign institutional investors and foreign domestic investors, so that was a very good feedback that we got. We’re very happy.

“And that’s why we’re bidding the price down and the effective price also went down. So that’s why there’s that interest and we’re pleasantly surprised that there’s more people coming out saying they will wait but now that they found out the rate and they heard about the upcoming news announcements of Kevin Tan they’re excited and they’re trying to get more shares,” Francisco said.

A special dividend awaits investors, he said.

“If you buy MREIT, in a month there will be a special dividend already . There’s a cash return already for you,” Francisco said.

Francisco noted MREIT’s dominant position in the office space that will allow it to generate multi-year growth.

He said the real estate investment trust of the country’s leading office landlord, Megaworld, has a superior portfolio free of Philippine Offshore Gaming Operators (POGO).

Most of its office properties are Philippine Economic Zone Authority-accredited cyber zones and are occupied by high quality business process outsourcing companies and multinational firms, making MREIT attractive to income hunters.

“Megaworld Group has no POGOs, and MREIT has no POGOs. That’s what differentiates it with the other REITs in the market. Again, they are PEZA-registered and that gives them that unique superior ability,” Francisco said.

Tan, president of MREIT, has committed to boost MREIT’s leasable portfolio to one million square meters in the next five to 10 years in line with its goal to be the country’s largest and fastest growing REIT in Southeast Asia.

Next year, Megaworld is infusing an additional 100,000 square meters of prime office assets to boost its portfolio to around 324,000 sqm by end-2022.

MREITs initial portfolio of 224,431 sqm consists of 10 prime office buildings in three of Megaworld’s most established township locations. These include 1800 Eastwood Avenue, 1880 East Avenue, E-commerce Plaza, One World Square, Two World Square, Three World Square, 8/10 Upper McKinley Building, 18/20 Upper McKinley Building, One Techno Place Iloilo, Richmonde Tower and Richmonde Hotel Iloilo.

“We only see this as the beginning of a very long growth runway. We thank investors for their trust and confidence in supporting our IPO. We are excited about the opportunity to grow and create value for our sponsor, our investors and for the country”, said Tan.

SOURCE: Bilyonaryo

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Kevin Tan: MREIT IPO’s institutional tranche 2x oversubscribed

 

The institutional tranche of MREIT Corp.’s initial public offering is twice oversubscribed, reflecting healthy investor interest for the issue backed by the country’s biggest office landlord Megaworld Corp.

MREIT president Kevin Tan said the company downsized its IPO and priced it at P16.10 per share, below the maximum proposed price of P22 in its desire to please investors.

“The company has decided to price the deal at an attractive level to provide more upside to IPO investors who will be its long-term partners in this new journey. At this IPO price, MREIT will be offering investors an attractive dividend yield of 5.65 percent to be distributed quarterly, and at the same time, we will be giving them exposure to high quality, fast-growing portfolio of assets,” said Tan, who is also chief strategy officer at Megaworld.

“If we exercised full option, it would have still been oversubscribed 1.5x. At this current size we are 2x,” he pointed out.

From the original plan of 1.078 billion shares, MREIT’s offer size has been whittled down to 949.84 million shares including an overallotment option of up to 105.54 million shares.

At its new price, MREIT’s maiden share sale could generate up to P15.3 billion, enough to support Megaworld’s 21 projects across the country in the next 12 months.

MREIT owns 10 office buildings catering to outsourcing firms and a hotel with a gross leasable area of nearly 225,000 square meters (2.4 million square feet), equivalent to 31 soccer pitches. It will add five more income-generating assets totaling 100,000 sqm in 2022, which is seen to boost the company’s dividends to shareholders.

“MREIT, being Megaworld’s flagship REIT, is being structured to deliver fast growth and strong aftermarket performance,” Tan said.

Tan said Megaworld would maintain a 62.5% stake in MREIT “to capture more near term and long term valuation upsides for its shareholders as MREIT actively grows its portfolio with the maturation of the overall REIT industry in the Philippines.”

SOURCE: Bilyonaryo

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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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Ready to move in: Kevin Tan hands over keys to Hidilyn Diaz’s 14-M condo

Ready to move in: Kevin Tan hands over keys to Hidilyn Diaz’s 14-M condo

Bilyonaryo Kevin Tan had the pleasure of personally welcoming Olympic champion Hidilyn Diaz to her new home in Eastwood, Quezon City courtesy of Megaworld.

The property developer saw through its promise of giving her a fully-furnished unit at One Eastwood Avenue condominium worth P14 million.

The two-bedroom unit was turned over to the country’s first-ever Olympic gold medalist on Monday, August 9.

“All that Hidilyn and her family need to do is just bring their clothes and other personal effects, and they are good to stay in the unit…She has brought so much pride to our country and she deserves all these rewards for her hardwork in raising our flag so high in the Tokyo Olympics,” said Tan, chief strategy officer at Megaworld.

 On top of the prime property, Tan also presented Diaz with a charcoal painting commissioned just for her to mark a job well done.

 SOURCE: Bilyonaryo

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Kevin Tan shakes off COVID blues: Megaworld Q2 profit jumps to P2.6B

Property developer Megaworld reported a strong bounceback in its second quarter earnings, surging 39 percent to P2.6 billion on robust office leasing business and the recovery of its retail and hospitality segments.

Core revenues climbed 20 percent to P11.2 billion, driven by the improved performance across all businesses.

Rental income rose 4% to P3.2 billion, P537 million of which came from Megaworld Lifestyle Malls which marked a five percent increase from last year due to the easing of quarantine restrictions during the period.

Revenues from Megaworld Premier Offices went up four percent to P2.7 billion while the hotels and resorts business had a solid performance, contributing P389 million in revenues or 16 percent more than last year.

Real estate sales jumped 29% to P7.6 billion as construction activities improved.

Megaworld chief strategy officer Kevin L. Tan attributed the strong second quarter results to the measures implemented by the company to drive revenue and generate new opportunities amid the pandemic.

“We attribute the steady recovery of our businesses to our ability to identify opportunities amidst the pandemic, as we continue to focus our efforts to create products and services that meet the evolving needs of our customers and to our ability to identify opportunities amidst the pandemic, as we continue to focus our efforts to create products and services that meet the evolving needs of our customers,” Tan said.

In the six months to June, however, Megaworld’s net earnings declined by seven percent to P5 billion year on P22.2 billion in revenues.

SOURCE: Bilyonaryo

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