LISTED property developer Megaworld Corp. said it will use the proceeds from its recent block sale of MREIT, Inc. shares to support the continued development of its townships in Cebu and Bacolod.
The block sale, executed on July 25, involved 84.8 million common shares of MREIT sold at P13.82 per share. MREIT is the real estate investment trust of Megaworld.
Megaworld generated P1.16 billion in net proceeds from the block sale, it said in a regulatory filing on Monday.
“Megaworld intends to use the net proceeds received from the sale to fund ongoing and future investments in real estate properties in two townships located in Cebu and Bacolod for the development of malls, offices, and other developments within each township…,” it said.
The company will allocate P700 million to continue developing the 30-hectare Mactan Newtown township in Cebu, while P457.6 million will be used for projects in the Bacolod township.
Megaworld is developing the 34-hectare The Upper East township in Bacolod.
“All disbursements for such projects are intended to be distributed within one year upon receipt of the money raised from the sale,” Megaworld said.
Megaworld tapped Maybank Securities, Inc. and BDO Securities as brokers for the block sale.
In June, Megaworld’s tourism and leisure township development subsidiary, Global-Estate Resorts, Inc., earmarked P5 billion to develop the 116-hectare Nascala Coast beachside township in Nasugbu, Batangas, over the next five years, marking the 36th township in its portfolio.
Nascala Coast will consist of residential villages, beachside condominium clusters, commercial hubs, and leisure destinations.
On Monday, Megaworld shares rose by 1.02% or two centavos to P1.99 apiece. – Revin Mikhael D. Ochave
