CityMall Commercial Centers Inc. has signed 10-year lease contracts amounting to P4.97 billion for an additional 22 SM Savemore Supremarkets for sites all over the Philippines, its parent firm told the stock exchange on Friday.
In a disclosure, DoubleDragon Properties Corp. said thef the contracts cover the opening of the supermarkets in 2018 in Luzon, Visayas and Mindanao.
Hannah M. Yulo, DoubleDragon chief investment officer, the signing of 22 more supermarket locators for CityMalls’ soon-to-open malls “is a testament to the value of what CityMall is providing to modern retail brands and the relevance of the platform we provide in their expansion into the next frontier of retail.”
The 22 sites covered by the contracts signed on Friday are expected to open within the year, DoubleDragon said.
It said from supermarket tenants alone, the 100 CityMalls once completed are expected to generate at least P20 billion in rental income in the first 10 years of operations.
As of end-2017, DoubleDragon said it completed 332,500 square meters (sq.m.) of leasable space, with end-2018 expectations placed at 600,000 sq.m. of leasable space.
It said as of the first quarter, the first 28 operational malls in its portfolio are more than 95% leased out.
“We now have 28 operational malls, plus the 22 more malls slated for completion this year; we are in line with our goal of having 50 completed malls by the end of this year,” said DoubleDragon Chairman Edgar “Injap” Sia II.
DoubleDragon said its 2020 target is to have 1.2 million sq.m. of leasable space in line with its long-term goal of deriving 90% of its revenue from “diversified recurring revenue sources backed by a string of appreciating hard assets.”
It said CityMall’s relevance in the provinces is becoming more evident as it moves forward, driven by the organic shift from traditional retail to modern retail in the Tier 3 provinces, and the noticeable penetration of e-commerce in the Tier 1 urban areas of the country.
“In parallel, these two transitions are expected to make expansion into CityMalls more and more critical to modern retail tenants seeking to hedge their exposure against the disruptive digitalization of the retail environment in Metro Manila,” it said.
On Friday, shares in DoubleDragon rose 1.26% to close at P32.15. — Victor V. Saulon