Philippine firm MREIT prices $307m IPO at low end of guidance

Philippine company MREIT Inc said on Friday it has priced the country’s fifth real estate investment trust (REIT) offering at the low end of its guidance, in a share sale that could generate up to 15.3 billion pesos ($306.61 million).

Philippine conglomerates and property firms have been racing to monetise mature assets through REITs, adding to a slew of IPOs expected to help the country take the rare top slot in fundraising in Southeast Asia this year.

In a filing to the Philippine Stock Exchange, MREIT said it would offer up to 949.84 million shares, including an overallotment option of up to 105.54 million shares, at 16.10 pesos per share.

It reduced the size of its IPO from the previous plan to offer up to 1.078 billion shares, with an overallotment option of up to 161.7 million shares.

Price guidance was set at 16.10 to 17.10 pesos per share, implying a yield of 5.5% to 5.9% for 2022, according to a report by IFR, a fixed income news service owned by Refinitiv.

MREIT is a subsidiary of Megaworld Corp, the Philippines’ biggest office landlord.

REITs manage real estate assets like office buildings and commercial centres that generate profits, and are attractive to investors seeking regular dividends.

MREIT owns 10 office buildings catering to outsourcing firms and a hotel with a gross leasable area of nearly 225,000 square metres (2.4 million square feet), equivalent to 31 soccer pitches. MREIT will add five more income-generating assets totaling 100,000 sqm in 2022, said chief executive Kevin Tan.

Proceeds from the share sale will be used to build more office buildings, malls and hotels.

A slew of initial public offerings (IPO) and REIT listings that could top $4 billion look set to transform the Philippines’ bourse into one of Southeast Asia’s most vibrant this year.

The IPO of RL Commercial REIT, set to list on Sept. 14, will raise as much as 23.5 billion pesos, the country’s largest.

Reuters 

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.