DoubleDragon to raise P9.7 B from sale of bonds

MANILA, Philippines - DoubleDragon Properties Corp., the listed property and mall developer of Mang Inasal founder Edgar “Injap” Sia II and Jollibee Foods Corp. chairman Tony Tan Caktiong, is going back to the debt market this year with a plan to raise P9.7 billion from the sale of retail bonds.

DoubleDragon chief investment officer Hannah Yulo said the P9.7 billion would be the company’s last fund raising for its program of having one million square meters of leasable space by 2020 which in turn, would churn in P4.8 billion in net income for the company.

“We are looking forward for our planned retail bond offering this year which will be the last fundraiser we need to complete our one million square meters of leasable space by 2020,” Yulo said.

On Friday, the company reported a 136 percent growth in consolidated net income to P1.47 billion last year from P623 million in 2015.

Recurring revenue, meanwhile, rose to P347.6 million in 2016 compared to only P116.5 million a year ago and from only P6.04 million in 2014.

By 2020, DoubleDragon’s target is to derive 90 percent of its revenue from recurring sources driven by the rental revenues to be generated by its planned one million square meter leasable portfolio while only 10 percent will be reliant on non-recurring sources.

To date, the company’s landbank is now sufficient to provide more than two thirds of the company’s planned rollout of leasable space by 2020.

Since its public listing in 2014, DoubleDragon has increased its portfolio of prime commercial properties from only 1.9 hectares pre- IPO to over 75 hectares of prime commercial properties across various cities today.

Furthermore, the company also maintained a healthy net debt-to-equity at a low of 0.92 times at the end of last year which is a substantial improvement from the previous year’s net debt-to-equity which was at 1.67 times.

At present, DoubleDragon has 15 operational CityMalls across Luzon, Visayas and Mindanao all averaging over 95 percent leased out.

Apart from the already operational CityMalls, over 30 CityMalls are under construction in various prime provincial areas in Luzon, Visayas and Mindanao.

The company will open another 10 CityMalls in the third quarter of 2017, and expects at least 30 CityMalls to be in operation by the end of the year, said DoubleDragon chairman Edgar “Injap” Sia II.

“As we continue to move forward, we look ahead to an even stronger DoubleDragon as we continue to break barriers and be relentless in the pursuit of achieving our clear vision through sheer determination, resourcefulness and passionate execution. I am personally excited to see the vision of DoubleDragon through as it slowly takes shape and becomes clearer to many more as we go forward,” Sia said.