SM unit buys 34% stake in community mall firm

SM Investments Corp. has acquired a 34-percent stake in the community shopping mall development unit of DoubleDragon Properties Corp., the real estate arm of fast-food magnates Edgar “Injap” Sia II and Tony Tan Caktiong that will soon debut on the stock market.

DoubleDragon and SM Investments Corp. announced Monday the signing of the community mall development partnership deal. SMIC bought into CityMall Commercial Centers Inc. (CMCCI) where DoubleDragon will keep a 66-percent interest as well as management control.

CMCCI was recently incorporated as a wholly owned subsidiary of DoubleDragon and is intended to be the umbrella company for community mall projects around the country to be branded as “CityMall.”

“The partnership of the Sy, Tan and Sia families in CMCCI will bring into the company the extensive experiences and wisdom of each family in managing, expanding and professionalizing a business entity,” DoubleDragon said in a statement. “CMCCI is expected to be a significant contributor to the recurring income of its shareholders and will fuel economic growth of several local communities where it will be present.

“Like SM, Jollibee and Mang Inasal, CityMall is expected to become another world-class, homegrown brand that every Filipino can be proud of,” the property firm added.

Sia founded the Mang Inasal grilled chicken franchise of which a 70-percent interest was sold in 2010 to Jollibee Foods Corp., which was founded by Tan Caktiong.

The CityMall chain is envisioned to become one of the biggest branded independent community mall network in the Philippines with floor areas of about 5,000 to 10,000 square meters in each location and will be located in prime locations, mostly in Visayas and Mindanao.