Megaworld's MREIT Approves PHP27-Billion Share Swap to Add Mall, Hotel, and Office Assets in Metro Manila

MREIT, the real estate investment trust sponsored by Megaworld, has approved a PHP27-billion property-for-share swap that will add mall, hotel, and office assets across Metro Manila, marking the largest REIT transaction recorded in 2026, according to a market intelligence report published Aug. 7 by Colliers Research.

Deal Scale and Portfolio Impact

The acquisition will add 303,900 square meters of gross leasable area to MREIT's portfolio, pushing the company closer to its stated target of 1 million square meters. Following the transaction, offices will account for 77% of MREIT's total portfolio, while retail and hotel assets will represent 20% and 3%, respectively. The deal is structured as a property-for-share swap, with Megaworld on the seller side and MREIT as the acquiring entity.

The transaction spans three asset classes — mall, hotel, and office properties — located in Metro Manila. Individual property names and addresses were not identified in the Colliers report.

REITs as Capital-Recycling Vehicles

Colliers noted that major property developers in the Philippines have increasingly used REITs as a capital recycling mechanism, allowing them to unlock asset value while maintaining operational control and funding new development pipelines. Since 2020, developers have infused office, retail, hotel, and emerging asset classes — including industrial and energy-related properties — into their REIT portfolios.

The Securities and Exchange Commission has also issued a memorandum circular revising the implementing rules of the REIT Act of 2009, expanding allowable REIT asset classes to include toll roads, railways, airports, and data centers. Colliers said this amendment should broaden the REIT market and allow developers to diversify future asset infusions.

Metro Manila Office Supply and the AO 18 Lifting

The MREIT transaction comes as Metro Manila's PEZA-accredited office supply remains under pressure. As of the second quarter of 2026, approximately 1.5 million square meters of PEZA-proclaimed office space was available for lease in Metro Manila, down 6.2% year-on-year.

Against that backdrop, the lifting of Administrative Order 18 — which previously prohibited the establishment of new ecozones in Metro Manila — could expand the pipeline of accredited office space. At least five developers with pending Philippine Economic Zone Authority applications stand to benefit: MJ Landtrade Development Corporation for its Altaire project in Makati; Triumvariate Development Corporation for One Trium Tower in Alabang; Ayala Land for ARCA South 1 in Taguig; Aseana Holdings for Parqal in Parañaque; and San Lorenzo Ruiz Investment Holdings and Services for the Yuchengco Centre in Makati.

Colliers said PEZA accreditation and incentives remain critical considerations among occupiers, particularly outsourcing firms, and that more accredited office options should enhance Metro Manila's competitiveness and improve the country's ability to attract global outsourcing players.

Retail Premiumization: Greenbelt 2 Reopens

The Colliers report also highlighted the reopening of Greenbelt 2's ground floor in Makati after two years of renovation. The redevelopment replaced al fresco restaurant spaces with global fashion and lifestyle brands, including Maison Margiela 6, CDG3, Maison Kitsuné, and Omotesando Koffee. Greenbelt 3 cinemas were also upgraded as part of the broader repositioning of the Ayala commercial core. Greenbelt 1 is slated to reopen in 2028 as a modern retail complex.

Colliers framed the Greenbelt 2 repositioning as part of a wider premiumization trend in Philippine retail, with developers shifting from conventional mall models toward curated, lifestyle-oriented environments targeting middle- to higher-income consumer segments. The firm expects new retail developments of this type to be positioned as destinations rather than traditional shopping centers.

Sources:
Colliers Research — Property Market Intelligence, Aug. 7, 2026
Manila Standard — MREIT to acquire P27 billion in mall, hotel, office assets via share swap
Philippine News Agency — DTI: 5 firms with pending PEZA applications benefit from AO 18 lifting