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Friday, March 29, 2024

DoubleDragon to sell shares

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DoubleDragon Properties Inc., jointly owned by Injap Investments Inc. of businessman Edgar  Sia II and Jollibee Foods Corp.the  chairman Tony Tan Caktiong, plans to raise P10 billion through the issuance of preferred shares to fund capital expenditure on several commercial and real estate projects.

DoubleDragon said in a disclosure to the stock exchange it would issue 100 million worth of preferred shares at an issue price of P100 apiece.

The preferred shares will come from the proposed increase in the company’s authorized capital stock to P20.5 billion and the creation of new non-voting preferred shares.

DoubleDragon said it was still finalizing the other terms of the preferred shares and the timetable of the issuance.

DoubleDragon in May also raised P5 billion from the issuance of fixed rate corporate notes.

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DoubleDragon, which was listed with the Philippine Stock Exchange in 2014, aims to be one of the top five largest property companies in the Philippines by 2020 through the build up of 1 million square meters of leasable space.

The property firm plans to achieve the target by building a chain of 100 community malls by 2020 that will require a capital spending of P24 billion.

The company so far has secured half of the sites required for the space build-up.

It is also developing the 4.8-hectare DD Meridian Park at the corner of Macapagal Ave. and Edsa Extension in Pasay City. Once the entire development is fully completed, DD Meridian Park will have over 280,000 square meters of prime leasable space.

The company this year plans to complete 25 CityMalls outlets.

DoubleDragon reported a net income of P713.6 million in the first nine months of the year, up 113 percent from P338.1 million posted in the same period last year.

The company said the opening of first five CityMalls and the recent launching of Dragon8 Mall-Divisoria and mall stall units have started to contribute in rental revenue.

The company said it expects more significant revenue contribution once other projects currently under construction start to operate.

DoubleDragon earlier projected its net income to reach P1 billion by 2016 and P4.8 billion by 2020.

DoubleDragon has envisioned CityMall to become the largest independent chain of community malls in the country .

“DoubleDragon has already secured more than half of the land required to develop its targeted 1 million square meters of total leasable space within the next five years. Only a little over a year since its initial public offering in the Philippine Stock Exchange, the company has been able to consolidate a string of prime commercial properties across the country totaling to about 35.2 hectares,” said Sia, who is the chairman of DoubleDragon.

DoubleDragon chief investment officer Marianna Yulo earlier said the company preferred to raise funds through the debt market, instead of the equities market. He said the future valuation of the company’s shares would significantly increase, with the completion of community mall projects and office and real estate developments in the pipeline.

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