The Securities and Exchange Commission approved the P15-billion shelf registration of property developer DoubleDragon Properties Corp.
DoubleDragon said in a disclosure to the stock exchange the corporate regulator also approved the company’s initial offering of P10 billion worth of 10-year fixed-rate bonds to be issued next month.
Nearly half of the proceeds will be used to finance land development and construction of CityMalls, it said.
“The proceeds from the offer will be used to partly finance the construction of 5 to 10 CityMalls and acquisitions of 12 to 19 CityMall sites,” DoubleDragon said,
The 10 CityMalls currently under construction are located in Sultan Kudarat, Surigao City, San Jose Antique, Ozamiz City, Pagadian City, Calamba Laguna, Palo Leyte, Ormoc City, Pangasinan and Sorsogon City.
The company also explores potential CityMall sites in Butuan City, Cabadbaran (Agusan del Norte), Bayugan (Agusan del Sur), Legazpi, Ligao (Albay), Tabaco (Albay), Lamitan (Basilan), Balanga (Bataan), Batangas City, Tanauan (Batangas), Lipa City, Baguio, Malaybalay (Bukidnon), Valencia (Bukidnon), Malolos, Meycauayan, San Jose Del Monte, Iriga. Naga, Bacoor and Cavite City.
The rest of the proceeds will be used to finance other revenue-focused projects of the company, including, DD Meridian Park in Pasay City and Jollibee Tower in Pasig City.
DoubleDragon hired BPI Capital Corp. and RBCB Capital Corp. as joint issue managers and joint lead underwriters for the offering.
The company aims to build a strong base of recurring revenue through the accumulation of one million square meters of leasable space. This business strategy will ensure the future cash flows to the company with minimal dependency on economic downturns or development of new projects.
Majority of the company’s land bank will be located in second and third tier provincial cities where land value is expected to grow at substantially faster rate than Metro Manila.