DD, RLC ink joint venture deal on Dec9
Property developers DoubleDragon Properties Corp. and Robinsons Land Corp. have teamed up to jointly acquire and develop a prime one-hectare commercial property in Libis, Quezon City that formerly housed a commissary of bakeshop chain Red Ribbon.
DoubleDragon and RLC are jointly investing P2 billion to the 50-50 percent partnership, which will create around 103,000 additional gross floor area of retail and office space, thereby boosting the recurring income portfolio of both parties, DoubleDragon chair Edgar Sia II said in an interview on Monday.
Since the property is adjacent to RLC’s first township development, Bridgetowne, this will also effectively expand the master-planned estate of the Gokongwei group’s property arm.
On this site will rise Robinsons DoubleDragon Square, where the land and building will be jointly owned by RLC and DoubleDragon. This will occupy about two-thirds of the property.
One-third of the site will be earmarked for a new hotel under DoubleDragon’s Hotel 101 brand. This will be the eighth Hotel 101 project in the country after the Hotel 101 prototype in the Bay Area and the subsequent projects in Taguig, Davao, Boracay, Bohol, Palawan and Cebu.
RLC’s Bridgetowne project includes residential condominium towers, office buildings, shopping centers and a five-star hotel. It will also feature a one-hectare park, an iconic public art installation and a transport terminal.
“We are glad to have this joint venture with Robinsons Land as we see the great potential of Bridgetowne to become one of the most relevant business parks in Metro Manila. We believe this partnership between DoubleDragon and Robinsons Land will bring about longterm fruitful gains to both companies,” Sia said.
“Being close to achieving our 2020 vision, we are now making preparations for the next stage of DoubleDragon’s growth,” Sia added.
The transaction is subject to approval by the Philippine Competition Commission and other applicable agencies.
DoubleDragon targets to complete a leasable portfolio of 1.2 million square meters by 2020, comprising of 700,000 square meters from 100 CityMalls, 300,000 square meters from its Metro Manila office projects DD Meridian Park and Jollibee Tower, 100,000 square meters from the pipeline 5,000 hotel rooms of Hotel 101 and Jinjiang Inn Philippines, and another 100,000 square meters of industrial space from various CentralHub sites across Luzon, Visayas and Mindanao.
The company’s four pillars of growth are provincial retail leasing, office leasing, industrial leasing and hotels, all of which are seen to provide a diversified source of recurring revenues backed by a string of appreciating hard asset.