DoubleDragon Properties Corp. acquired a 5.2-hectare property in Danao, Cebu province that will serve as the company’s second logistics hub in Visayas.
DoubleDragon said in a disclosure to the stock exchange CentralHub-Cebu would have a capacity of 27,212 square meters of industrial warehouse space.
DoubleDragon so far has bought 15.3 hectares of prime industrial land in three sites with a total capacity of 81,219 sqm. of industrial warehouse leasable space.
The first two logistics hubs are located in Tarlac, a 6.2-hectare lot with 32,000 sqm of leasable industrial space, and in Iloilo, 3.9-hectare property with a capacity of 22,000 sqm. of leasable space once fully developed.
DoubleDragon, through its industrial leasing subsidiary, CentralHub Industrial Centers Inc., aims to become the leading provider of industrial warehouses in the Philippines.
The first eight logistics hubs are projected to have a total capacity of up to 400,000 sqm. of warehouse leasable space.
Each hub will contain modern standardized multi-use warehouses suited for commissaries, cold storage, light manufacturing, and logistic distribution centers.
“We are very enthusiastic over the distinct potential of CentralHub industrial complexes. Just on the pilot phase in CentralHub-Tarlac, it is already achieving double-digit yields which we expect will further strengthen as CentralHub scales up in number of warehouses,” said DoubleDragon chief investment officer Hannah Yulo.
“CentralHub is expected to be a major contributor to our growth especially beyond 2020. In addition to the rental income, the company is also able to capitalize on the long-term value appreciation of its prime hard assets,” she added.
Industrial warehouse leasing is one of DoubleDragon’s four pillars of growth, which include provincial retail leasing, office leasing and hotels in line with its vision to be a primarily recurring revenue focused property company.
It plans to complete a leasable portfolio of 1.2 million sqm. by 2020 comprising of 700,000 sqm. from 100 CityMalls, 300,000 sqm. from its Metro Manila office projects, 100,000 sqm from hotels and 100,000 sqm. of industrial space.
