DDMP REIT Inc., the real estate trust company of DoubleDragon Properties Corp., plans to raise up to P14.7 billion from an initial public offering.
DoubleDragon said Monday in a disclosure to the stock exchange DDMP REIT would file within the week an IPO application with the Securities and Exchange Commission.
The company said it hired six foreign and three domestic underwriters to handle the maiden offering.
It said net proceeds from the REIT offering would be used to construct about 425,000 square meters of building floor area that will significantly increase the leasable portfolio and recurring rental revenues of the company.
“The DDMP basket is seen to be a compelling REIT offering since it will include the land, a premier corner lot located along the main thoroughfares of Macapagal Ave., EDSA Extension and Roxas Boulevard, where the first six completed buildings sit on,” said DoubleDragon chairman Edgar Sia II.
“This feature is expected to be a game changer since the value of the prime double corner 4.75 hectare block of land with titled land ownership to be held in perpetuity should keep on appreciating decade after decade, a very important inclusion for both domestic and foreign investors,” he said.
“When there is underlying titled land ownership included in the REIT shares, even a hundred years from now it should keep its hard value intact. We see DDMP shares as a ‘Pamana Stock’ that even our future grandchildren will be happy to inherit,” Sia said.
DD REIT will become the second REIT firm to conduct an offering after Ayala Land-led AREIT Inc.
Meanwhile, DoubleDragon said net profit in the first nine months increased 61 percent to P5.03 billion from P3.12 billion in the same period last year as revenues went up by 41 percent to P9.79 billion from P6.93 billion.
MerryMart Consumer Corp., the grocery chain also owned by Sia, reported a nine-month net income of P14.5 million, up by 26.42 percent from a year ago as revenues rose 28.3 percent to P2.42 billion.