DoubleDragon Properties Corp. acquired a 3.9-hectare property in Iloilo that will serve as the second site for a planned chain of industrial hubs across the country.
DoubleDragon said in a disclosure to the stock exchange CentralHub-Iloilo would have a capacity of 22,000 square meters of leasable space once fully developed.
The property firm is currently constructing CentralHub-Tarlac, which sits on a 6.2-hectare lot within Luisita Industrial Park in Tarlac, with a capacity of 32,000 square meters of leasable space once fully developed.
The two industrial hubs combined will contribute approximately 54,000 square meters or 5.4 hectares of leasable industrial space.
“We believe the industrial leasing segment presents significant growth opportunities for DoubleDragon as the current market supply is very traditional and fragmented,” DoubleDragon chairman Edgar Sia II said.
“As a new player in an already mature real estate industry which has been dominated by large established players for decades, we are focused in segments within the real estate space where we still have an opportunity to organically dominate, such as industrial leasing, provincial community mall leasing and hospitality,” he said.
“Other than the e-commerce businesses that will soon require facilities such as CentralHub, there are also a lot of synergies within our ecosystem since both our affiliates and the tenants of our CityMalls are the natural users of warehouse facilities as they continue expand their business to capture the growing consumer base of the Philippines.
CentralHub is envisioned to become the leading provider of industrial warehouses in the Philippines through the development of its first eight CentralHub sites by 2020.
The planned eight CentralHub sites will have a total land area of 100 hectares.
Each CentralHub site will contain modern standardized multi-use warehouses suited for commissaries, cold storage, light manufacturing and logistics distribution centers.
CentralHub plans to have an initial 100,000 square meters of leasable industrial space by 2020.
DoubleDragon last year raised its target leasable space to 1.2 million by by 2020 from 1 million sq. m.
The increase in leasable space will also raise the company’s 2020 net income target to P5.5 billion from P4.8 billion.