LISTED property developer Megaworld Corp. raised P2.24 billion from the sale of 168.63 million common shares in its real estate investment trust (MREIT) through a block sale transaction, providing funds for ongoing and planned projects.
In a stock exchange disclosure on Thursday, the company said the shares were sold at P13.28 per share, with proceeds to be settled on Sept. 19.
Megaworld said it will submit a reinvestment plan detailing the use of funds from the sale.
Brokers for the transaction included Maybank Securities, BDO Securities, First Metro Securities Brokerage, and RCBC Securities.
“This transaction should be beneficial primarily to Megaworld, with indirect positives for MREIT as seen in similar REIT block sales. The P2.24-B proceeds provide additional funding for existing projects without the need to raise debt. This supports its strategy to launch new product lines, including its planned ultra-luxury segment which could be margin-accretive,” First Metro Securities Brokerage Equity Research Analyst Nicole Aquino said.
In July, Megaworld raised P1.17 billion from the block sale of 84.8 million MREIT shares at P13.82 per share, with net proceeds earmarked for township developments in Cebu and Bacolod.
On Thursday, Megaworld shares fell 1.44% to P2.05, while MREIT shares declined 2.16% to P13.60. — Beatriz Marie D. Cruz
