DoubleDragon readies P10-B preferred share sale

MANILA, Philippines – DoubleDragon Properties Corp., the real estate firm owned by Mang Inasal founder Edgar ‘Injap’ Sia II and Jollibee Foods Corp. owner Tony Tan Caktiong, has set a dividend rate of 6.4778 percent per annum for its P10 billion worth  of preferred shares.

The issue has attracted P26 billion worth of bids, indicating that the offer is already five times oversubscribed, DoubleDragon told the Philippine Stock Exchange.

 The offering has a base size of P5 billion with an oversubscription option of another P5 billion.

 DoubleDragon plans to issue up to 100 million preferred shares at P100 each.

According to the company, proceeds from the offer will be applied as paid-in capital for its  proposed application for increase in authorized capital and will be subsequently used to partially finance the development of CityMalls, DoubleDragon Plaza at DD Meridian Park, Jollibee Tower and The SkySuites Tower.

 DoubleDragon is simultaneously constructing 25 CityMalls nationwide.

 In less than two years since its initial public offering, DoubleDragon has already secured over two-thirds of the land bank it needs to develop to meet its goal of having one million square meters of leasable space by 2020.

DoubleDragon said 70 percent of its intended leasable portfolio will be coming from the development of 100 CityMalls  across the provincial cities of the Philippines for which it has already secured over 45 prime commercial  sites.

The balance of  30 percent of its intended leasable portfolio will be contributed by its two office projects-DD Meridian Park in the Bay area and Jollibee Tower along the Ortigas central business district.

The Securities and Exchange Commission (SEC) on Monday approved DoubleDragon’s proposed P10 billion preferred share offering.

The company acquired its first CityMall site in Roxas City in December 2013. It is also in the process of  securing 14 more CityMall sites in Zamboanga, Cebu, Iloilo, Cavite, Cotabato, Pampanga, Kalibo, Boracay, Quezon and Bacolod, in line with its goal of boosting its net income to P4.8 billion by 2020.

 DoubleDragon aims to be among the top five largest property companies in the country in the next five years.

The company’s net earnings more than doubled to P713.6 million in the nine months to September last year.

As of the end of September 2015,  DoubleDragon’s total assets stood at P24.9 billion or an increase of 35 percent from the same period a year ago.