DoubleDragon shifts revenue source

MANILA, Philippines - DoubleDragon Properties Corp., the property company owned by Mang Inasal founder Edgar “Injap” Sia II and Jollibee Foods Corp. owner Tony Tan Caktiong, is shifting its main source of revenue to recurring income from mostly non-recurring income as the company continues to create more leasable space, its top official said.

In an interview with The STAR, DoubleDragon chairman and chief executive officer Edgar “Injap” Sia said the company is on track to reaching its target of 90 percent recurring income by 2020 as the company builds more CityMalls across the country, from which it would derive its recurring income through lease of retail space.

“We’re shifting from a non-recurring revenue model to a recurring model. DoubleDragon will continue moving forward toward its goal of deriving 90 percent recurring income by 2020 and the string of prime commercial land across the Philippines will be the strong backbone of DoubleDragon,” Sia said.

Sia said the big shift would start in 2018.

At present, the company’s recurring income comprises just less than 10 percent, while 90 percent of revenues comes from non-recurring projects such as sales income from its residential projects such as Taft Residences in Manila and SkySuites in Quezon City.

DoubleDragon’s goal is to have one million square meters of leasable space by 2020 through the rollout of 100 community malls across third-tier provincial cities in the Philippines through its community mall chain brand CityMall and through the development of two major commercial office projects, DD Meridian Park and Jollibee Tower, both of which are located in prime locations within Metro Manila.

The company is on track to hitting this goal, Sia said.

“Over two thirds of the land we need to reach the one million square meters of leasable space has already been secured in the past two years,” he said.

“The target is to open 25 CityMalls this year plus the five opened last year so that’s a total of 30 hectares by end 2016,” he added.

“We envision a CityMall in every provincial countryside community in the Philippines and is expected to become the modern melting pot of the communities where we locate. As the millennium population is moving up, CityMall is geared to be their standard of modern retail shopping place,” Sia said.

The company is currently constructing the DD Meridian Park, which will have 280,000 square meters of leasable office space and Jollibee Tower, which would have 47,909 sqm of leasable space.

The 4.8-hectare DD Meridian Park will rise at the Bay Area, Macapagal Avenue in Pasay City while the 40-story Jollibee Tower building will be located at Emerald Avenues, Skysuites Tower. Both are targeted for completion by 2018.