DoubleDragon gets OK for P14.7 billion REIT listing

MANILA, Philippines — The Securities and Exchange Commission (SEC) has given the green light to tycoon Injap Sia II’s real estate investment trust offering amounting to P14.71 billion.

In its Feb. 16 meeting, the commission en banc approved the registration statement of DoubleDragon Properties Corp.’s DDMP REIT which covers 17.8 billion common shares for listing on the main board of the Philippine Stock Exchange (PSE).

DDMP pegged the maximum offer price at P2.25  per piece or a total of P14.7 billion, with the selling shareholders receiving the entire proceeds.

The proceeds shall be reinvested in the Philippines, pursuant to the Revised Implementing Rules and Regulations of Republic Act 9856, otherwise known as the Real Estate Investment Trust (REIT) Act of 2009.

DDMP plans to proceed with the share sale on March 5 to 11 while the listing of the shares is scheduled on March 19, based on the latest timetable submitted to the SEC.

DDMP will offer to the public up to 5.9 billion common shares currently owned by DoubleDragon, Benedict Yujuico and Teresita Yujuico. The selling shareholders have set aside 594.25 million additional shares for over-allotment.

Assuming the full exercise of the over-allotment option, the new investors will corner 36.67 percent of the issued and outstanding common shares of DDMP.

DoubleDragon will retain a 44.33 percent interest, while Benedict and Teresita  Yujuicos will continue to own 9.65 percent and 9.35 percent, respectively.

DDMP’s portfolio includes six office towers with retail components within DD Meridian Park in Pasay City. The company’s leasing spaces cater to a mix of tenants, such as business process outsourcing companies, government agencies, and corporate locators.

As mandated by law, DDMP shall distribute at least 90 percent of its annual distributable income as dividends.

The distributable income refers to the company’s net income as adjusted for unrealized gains and losses/expenses and impairment losses, and other items in accordance with internationally accepted accounting standards. It excludes proceeds from the sale of the REIT’s assets that are reinvested in the REIT within one year from the date of the sale.

The company tapped Credit Suisse (Singapore) Ltd., DBS Bank Ltd., Nomura Singapore Limited and PNB Capital and Investment Corp. as joint global coordinators for the REIT offering.

The global coordinators will concurrently serve as joint bookrunners, along with CIMB Investment Bank Bhd, Investment & Capital Corp. of the Philippines (ICCP), Macquarie Capital Securities (Singapore) Pte. Ltd., Maybank Kim Eng Securities Pte. Ltd. and RCBC Capital Corp.

DDMP further mandated Credit Suisse, DBS, Nomura, CIMB, Macquarie and Maybank as international bookrunners for the offer, and PNB Capital, ICCP and RCBC Capital as domestic underwriters.