DoubleDragon Properties Corp. is expecting to raise P16.97 billion from the first series of its real estate investment trust (REIT) offering, the application of which will be filed next month.
In a stock exchange disclosure on Friday, the listed property developer said it had chosen P50.89-billion worth of leasable assets of its joint venture firm DD Meridian Park Development Corp. (DDMP) to make up the first tranche of its upcoming offer.
The seven properties under this series have a combined area of 248,349 square meters (sq.m.) or over a fourth of DoubleDragon’s total leasing assets with 803,000 sq.m.
The company owned by businessman Edgar “Injap” J. Sia II said it will use the P16.97 billion proceeds from the REIT offering to build a 450,000 sq. m. leasable building to add to its portfolio.
DoubleDragon is set to file its REIT listing application with the Securities and Exchange Commission and the Philippine Stock Exchange in August. It targets to list its offer in October.
The DDMP complex is jointly owned by DoubleDragon and the Yujuico family. It sits on a 5-hectare commercial property at the corner of Macapagal Avenue and the Epifanio Delos Santos Avenue (EDSA) Extension at Bay Area, Pasay City in Metro Manila.
The company plans to list 200,000 to 250,000 sq. m. of properties via REIT each year by 2025.
It noted that its total equity stood at P44.5 billion in the first quarter. With the REIT listing, DoubleDragon expects that it will be raised to P50 billion.
“REITs are a good way to recycle capital for expansion of the Company’s portfolio and raise equity to further boost its balance sheet. Since the offer will only cover 33.33% of the REIT basket, DoubleDragon will retain majority of the REIT assets so it will remain consolidated in the Company’s balance sheet,” DoubleDragon Chief Investment Officer Hannah Yulo-Luccini said.
She claimed that the company’s offer has an “attractive” size that would entice both foreign and local investors.
The Sia-led firm said two under-construction buildings within the DDMP complex are slated to be offered over the next two to three years.
It eyes to complete a leasable portfolio of 1.2 million sq. m. over the next two years.
Shares in DoubleDragon inched up 0.59% to close at P17.10 each on Friday. — Adam J. Ang