UPDATE 1-Philippines' Megaworld unit eyes country's largest REIT IPO

(Adds detail, background)

* On track to be fifth and largest REIT IPO in the Philippines

* Megaworld is Philippines’ biggest office landlord

* MREIT to offer, list shares in Q3

MANILA, June 16 (Reuters) - Philippines’ Megaworld Corp is launching an up to 27.3 billion pesos ($567.8 million) share sale for its real estate investment trust (REIT) unit, a company official said on Wednesday.

A slew of initial public offerings (IPO) and REIT listings that could top $4 billion could see the Philippines claim the top spot in Southeast Asia in terms of capital market fundraising this year.

MREIT Inc is seeking regulatory approval for the country’s largest REIT IPO, to sell up to 1.4 billion shares, including an over-allotment option, at a maximum price of 22 pesos ($0.46) apiece, Kevin Tan, president of MREIT and chief strategy officer of Megaworld, told reporters.

Without the greenshoe, the IPO will raise up to 23.7 billion pesos, Tan said, adding that listing is targeted for September.

REITs manage real estate assets such as hotels, office buildings and malls that regularly generate profits and hand out dividends to stockholders.

MREIT will own 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.

Proceeds from the share sale will be used to fund Megaworld’s construction of office buildings, malls, and hotels, Tan said. Megaworld, the Philippines’ biggest office landlord, owns 70 buildings with 1.4 million sqm of leasable space.

It would be the largest REIT in the Philippines thus far, topping the up to 26.7 billion IPO planned by Robinsons Land Corp for its subsidiary.

To date, there are two REIT firms listed in the Philippines.

$1 = 48.08 Philippine pesos Reporting by Neil Jerome Morales Editing by Ed Davies