Double Dragon eyes new US dollar bond sale
MANILA, Philippines – DoubleDragon Corp., the real estate venture between tycoons Tony Tan Caktiong and Edgar “Injap” Sia II, is planning a new US dollar bond sale as it gears up to expand its Hotel101 condotel franchise overseas.
The developer, through wholly-owned offshore subsidiary DDPC Worldwide Pte. Ltd., said in a stock exchange filing on Monday it hired investment bank UBS as sole deal arranger for a “top up” offering on its $160- million 7.25 percent outstanding bonds listed in Singapore and due in 2025.
It did not indicate the final amount to be raised but said the deal was aimed at “diversification of its funding sources as it prepares itself to grow its business operations inside and outside the Philippines over the long-term.”
“Philippine companies have successfully offered and listed fixed term senior bonds on the [Singapore Exchange Securities Trading Ltd.] in recent years,” DoubleDragon said in the filing.
“DoubleDragon recognizes the value that diverse funding sources and a broad investor base provide for its growth and expansion and further boost its cash position,” it added.
DoubleDragon said the bonds will be added to DDPC Worldwide’s existing maiden debt issue in Singapore.
Proceeds from the offer will help the company achieve its goal of growing Hotel101 into a “top 5 global hotel group” with about 500,000 rooms by 2040.
Its first international location is a 518-room Hotel101 that is rising in Niseko, Hokkaido in Japan.
Hotel101 differentiates itself from competitors by providing uniform-sized rooms across locations while offering more accessible price points.
“The Hotel 101 concept allows DoubleDragon to generate revenue and income twice, first from the pre-selling of the condotel units, then second after the project is constructed it generates long term recurring revenue from hotel operations,” the builder said.
To date, DoubleDragon has completed a portfolio of over 1.2 million square meters of leasable space. Its projects include CityMall community centers and office buildings In DD Meridian Park complex in Bay Area Pasay and the 42-storey Jollibee Tower in Ortigas central business district. It also operates CentralHub warehouses.
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