THE PHILIPPINE Stock Exchange has approved the listing of P10 billion worth of preferred shares issued by property developer DoubleDragon Properties Corp.
Subject to the company’s compliance with the post-approval requirements of the PSE, the 100 million preferred shares will soon be listed on the local bourse, DoubleDragon said in a press statement on Monday.
The listing gives investors the option to trade these securities at the secondary market.
The preferred shares were issued to subscribers last April 14, 2016 upon the approval of the Securities and Exchange Commission of the amendments to DoubleDragon’s articles of incorporation that in turn allowed the creation of these securities.
The P10 billion cash proceeds will fund the development of DoubleDragon’s core projects such as CityMall community malls and its Metro Manila Office projects, DD Meridian Park and Jollibee Tower.
“These string of appreciating assets spread out across the country is expected to provide strong and steady annual cashflows for the company and will strengthen its goal in becoming one of the largest and strongest property developers in the Philippines,” the company said in its statement.
To date, DoubleDragon has secured 50 CityMall sites, thereby reaching halfway of its planned rollout of 100 CityMalls by 2020.
All CityMall sites are in prime commercial city centers across second and third-tier cities in the Philippines. To date, seven CityMall sites are operational and averaging 96 percent lease-out.
The next CityMall to open is the branch in Parola-Iloilo, which is 100 percent leased out prior to opening. CityMall-Cotabato City is next to open afterwards.
The company is simultaneously constructing another 24 CityMalls across different provincial parts of the country in line with its goal to dominate the community mall industry in the Philippines, banking on the provincial transition from traditional retail to modern retail.
Meanwhile, DoubleDragon also reported the start of leasing activities for DoubleDragon Plaza, the first phase of DD Meridian Park, its flagship commercial office project in Metro Manila. The company has signed agency agreements with the country’s four leading real estate leasing agents, namely, CB Richard Ellis, Leechiu Property Consultants, KMC MAG Savills and Colliers International to handle the leasing of the project to domestic and foreign tenants.
DD Meridian Park, once fully completed, will contribute about 280,000 square meters of leasable space to the company’s envisioned 1 million square meter leasable portfolio by 2020. Construction of the 40-storey office building Jollibee Tower located at the Ortigas central business district is also in full swing construction and expected to start significantly contributing rental revenues by 2019.
“Two years ago, when DoubleDragon listed on the PSE last April 2014, it only had a one-hectare parcel of undeveloped property and nothing under construction. But it listed with a vision of accumulating a portfolio of one million square meters (100 hectares) of leasable space. To date we are very glad that in just the past two years, despite being a new player in the property sector, we have already opened eight malls and are simultaneously constructing projects in different prime commercial areas across the country” said DoubleDragon chair Edgar “Injap” Sia II.
“The company now has over 70 hectares of prime commercial land. To secure these properties is not easy, but the company took advantage of its agility, close familiarity and actual business experience in these provinces as we have already been operating Mang Inasal stores in almost all of these areas for several years now,” he said.