DoubleDragon Properties sets stock listing this year

MANILA, Philippines - The property firm of Mang Inasal founder Edgar “Injap” Sia II and Jollibee Foods owner Tony Tan Caktiong is tapping the equities market in the second or third quarter  this year, its top executive said.

Fresh funding from the initial public offering (IPO) of DoubleDragon Properties Corp. will jumpstart the company’s bid to become one of the top 10 property firms in the country by 2020, company chairman and CEO Edgar Sia told The STAR.

“Listing DoubleDragon in the stock market is one of our priority plans in the near term. We want to strengthen the finances of the company to increase its capacity for growth,” Sia said. DoubleDragon was initially created as Injap Land Corp., the real estate arm of Injap Investments Inc., in 2009. In July 2012, it was renamed DoubleDragon as it became a 50/50 joint venture between Injap Investments and Tan Caktiong’s Honeystar Holdings Corp.

Sia said that while key details of the listing are still being finalized, he prefers that a good chunk of the IPO shares to be sold to retail investors.

“We are selling only primary shares because the intention is to further fuel our growth,” Sia said.

The Mang Inasal founder said he wants countryside and middle income investors to benefit from regular dividends and capital appreciation.

Under the company’s expansion program, DoubeDragon intends to develop properties for all market segments depending on the specific location.

“We will also venture into commercial developments to build up our recurring income portfolio and create prime locations not only for Jollibee Group brands but also for other key anchor tenants,” Sia said.

DoubleDragon plans to build community and lifestyle shopping malls particularly for its township projects, Sia said.

The tie-up between Sia and Tan Caktiong began in 2010 when homegrown Jollibee bought a 70-percent stake in fastfood chain Mang Inasal for P3 billion in one of the largest acquisition deals in the local quick service restaurant sector.

Four years into operations, DoubleDragon already sold out and completed the People’s Condominium, the first condominium project in Iloilo, and the 111-unit First Homes Village, also in Iloilo.

Ongoing projects include two vertical residential projects with commercial components in Iloilo.

“I think we have enough inventory in Iloilo for the next two years. For the next few projects, we want to be in Manila,” Sia said.

Its first foray in Metro Manila is the W.H. Taft Residences just beside De La Salle University. DoubleDragon took over the 30-storey project in October and committed to delivering the units in December 2014.

So far, around 60 percent of the 562 units in the residential tower had already sold.

“We will continue to set our sights in acquiring existing projects or property companies that we think have a great potential,” Sia said.

For future projects, DoubleDragon is already in talks with several firms and land owners for potential partnerships, Sia said.

The property sector is benefiting from low interest rates that spur home loans, increasing income of the middle class, high demand amid a backlog and growth in the office segment driven by the outsourcing industry.