SM Group acquires 34% stake in DoubleDragon’s CityMall
(The Philippine Star) - February 18, 2014 - 12:00am

MANILA, Philippines - Mall and banking conglomerate SM Investments Corp. (SMIC) has acquired a minority stake in CityMall, a community mall developer jointly owned by Mang Inasal founder Edgar “Injap” Sia II and Jollibee Foods Corp. chairman Tony Tan Caktiong.

In a regulatory filing, SMIC said it signed an investment and shareholders deal to buy a 34-percent stake in CityMall Commercial Centers Inc.

The development, marking the first partnership among the Sy, Tan and Sia families, jumpstarts their plan to build 100 CityMall branches nationwide worth P24 billion in the medium term, Sia said.

Soon-to-be-listed DoubleDragon Properties Corp., a joint venture between Tan Caktiong and Sia, will retain its 66-percent stake and management control in CityMall.

“(CityMall) is a new subsidiary, so each will contribute in tranches which will be determined soon,” Sia said in a text message.

“But the total estimated capital expenditures to build the 100 CityMall community malls in the next three to five years is P23.75 billion,” he said, adding that the retail experience and financial muscle of SMIC is a great synergy to DoubleDragon in the long term.

SMIC, through property arm SM Prime Holdings Inc., is the country’s largest mall developer with 48 shopping centers in the Philippines and five in China.

The partnership of the Sy, Tan and Sia families in CityMall bring in the extensive experiences and wisdom of each families in managing, expanding and professionalizing a business entity, DoubleDragon said.

“CityMall is expected to be a significant contributor to the recurring income of shareholders and will fuel economic  growth of several local communities where it will be present,” DoubleDragon said.

DoubleDragon plans to sell 579.73 million primary shares at a maximum price of P2 apiece, allowing the company to raise P1.15 billion.

Proceeds of the initial public offering will allow the company to venture into shopping malls and office space development for the first time as it bids to become one of the top 10 property firms in the country by 2020.

DoubleDragon wants CityMall to become one of the largest independent branded community mall chain in the country with floor areas of 5,000-10,000 square meters each. It will be put up in prime locations nationwide, mostly in Visayas and Mindanao.

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 Honeystar Holdings Corp. of Tan Caktiong.

CITYMALL COMMERCIAL CENTERS INC DOUBLEDRAGON IN JULY INJAP INVESTMENTS AND HONEYSTAR HOLDINGS CORP INJAP INVESTMENTS INC INJAP LAND CORP INVESTMENTS CORP SIA TAN AND SIA
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