Restaurant chain operator Jollibee Foods Corp. said Friday it finalized a P3.7-billion investment in the industrial leasing business of DoubleDragon Properties Corp.
Jollibee said in a disclosure to the stock exchange wholly-owned subsidiary Zenith Foods Corp. signed definitive agreements to invest cash and properties in CentralHub Industrial Centers Inc.
CentralHub is in the business of developing industrial warehouse complexes that will contain standardized, multi-use and industrial quality warehouses suited for commissaries, cold storage and logistics centers to be leased to locators operating nationwide.
DoubleDragon said in a separate disclosure the investment by Jollibee would enable CentralHub to expand its recurring rental revenue portfolio with the consolidation of operating commissaries and warehouse assets of Jollibee.
The additional commissary assets to be infused by Jollibee will increase CentralHub’s total industrial land portfolio to 39.8 hectares.
Under the plan, Jollibee will acquire 1.6 billion common shares in CentralHub for P1.9 billion. Jollibee will infuse 16.4 hectares of industrial properties in CentralHub in exchange for more shares. These properties are being used as commissaries by Jollibee group.
The deal is a part of the company’s plan to reduce assets tied to real estate properties and focus on core food service, restaurant operations and food processing business.
This will also enable the company to raise funds for store expansion.
DoubleDragon earlier announced plans to eventually transform CentralHub into a real estate investment trust, with a planned initial public offering in 2022.
“The timing for the registration of the REIT initial public offering and the filing of the application for the REIT listing of CentralHub will be subject to the agreement of JFC and DoubleDragon, and the parties having secured the necessary regulatory approvals therefor,” DoubleDragon said.
DoubleDragon in a 50-50 joint venture between Jollibee chairman Tony Tan Caktiong and Injap Investments Inc. of Edgar Sia II.
The share price of Jollibee fell 2.27 percent Friday to P193.50.
