DoubleDragon expands presence in Davao

MANILA, Philippines — CentralHub Industrial Centers Inc., the industrial leasing arm of DoubleDragon Properties Corp., is expanding its presence in Davao.

In a disclosure to the Philippine Stock Exchange (PSE) yesterday, DoubleDragon said Centralhub has signed a joint venture agreement with Alsons Development & Investments Corp. for its fourth CentralHub industrial complex.

The new and latest complex is located in Davao City and will be 70 percent owned by CentralHub and 30 percent by Alsons.

With its expansion, CentralHub is expected to play a larger role in DoubleDragon’s growth path from 2020 and beyond, said DoubleDragon chairman Edgar “Injap” Sia II.

“DoubleDragon makes sure that it focuses only in ‘sunrise’ sectors within the real estate industry that is expected to remain relevant in at least the next 50 years,” Sia said.

He said the company has been seriously focused on building up its portfolio of prime hard assets that can generate high double digit rental yields and deploy capital only on select prime properties that can appreciate five to 10 folds in the next five to 10 years.

CentralHub-Davao has an area of 8.2 hectares with a capacity of 40,392 square meters of leasable industrial warehouse space.

This will be the first CentralHub in Mindanao following the company’s acquisitions of CentralHub-Danao, Cebu, CentralHub-Iloilo and CentralHubTarlac.

CentralHub has acquired a total of 23.3 hectares of prime industrial land with a total capacity of 121,626 square meters of leasable industrial warehouse space.

DoubleDragon envisions CentralHub to become the leading provider of industrial warehouses in the Philippines through the development of its first eight CentralHub complexes by 2020.

Two hubs will be located in North Luzon which include CentralHub-Tarlac, two in South Luzon,  two in Visayas which include CentralHub-Iloilo and CentralHub-Cebu and two in Mindanao.

The eight CentralHub warehouses are projected to have a total capacity of up to 400,000 square meters of warehouse leasable space.

Sia said each hub would contain modern standardized multi-use warehouses suited for commissaries, cold storage, light manufacturing and logistic distribution centers.

The company aims to have at least 100,000 sqm of leasable industrial warehouse space across the eight sites completed by 2020.

DoubleDragon chief investment officer Hannah Yulo said there has been rising demand for warehouse space for logistics, commissary, cold storage, distribution, manufacturing, consumer-related and e-commerce companies alike.

“The continuous investment in infrastructure projects are compelling e-commerce and consumer companies to enter new markets which has become the catalyst for the strong demand in industrial space,” Yulo said.