DoubleDragon Properties is raising 14.71 billion pesos (US$305 million) through the second real estate investment trust (Reit) to be launched in the Philippine capital markets.
The company on November 23 announced the filing of a registration statement with the Securities and Exchange Commission covering the Reit initial public offering (IPO) of DDMP REIT, previously known as DD-Meridian Park Development.
The Reit IPO would indicatively consist of a firm offer of up to 5.942 billion common shares, with an over-allotment option of up to 594.249 million shares, at an indicative offer price of up to 2.25 pesos per share.
As stated in the draft re-investment plan attached to the preliminary Reit plan, 100% of the combined shareholders’ proceeds from the IPO will be re-invested in the Philippines, as required by the relevant regulations, the company says.
The majority of the proceeds will be infused as equity into CentralHub Industrial Centers, DoubleDragon’s industrial leasing subsidiary, to increase its leasable industrial warehouse space and footprint nationwide. The warehouse complexes are designed for use as warehouses, cold storage facilities, commissaries or as logistics and distribution centres.
DDMP REIT will include the first six completed buildings in DD Meridian Park. The recently built buildings are LEED Gold-certified in the case of the four towers of DoubleDragon Plaza, while DoubleDragon East and West are currently pre-certified LEED Silver with above-standard specifications. LEED (Leadership in Energy and Environmental Design) is a green building certification programme used worldwide.
The company targets to complete a leasable portfolio of 1.2 million square metres by 2022 spread across its core business segments. DoubleDragon’s four pillars of growth – provincial retail, office and industrial leasing, and hotels – will provide the company with a diversified source of recurring revenues, backed by a string of appreciating hard assets.
DoubleDragon has mandated Credit Suisse, DBS, Nomura and PNB Capital and Investment as joint global co-ordinators for the IPO and joint bookrunners, along with RCBC Capital, Investment & Capital Corporation of the Philippines, Macquarie, Maybank Kim Eng and CIMB.
For the first nine months of 2020, the company reported a consolidated net income of 5.03 billion pesos, up 61.1% compared to 3.12 billion pesos in the same period a year ago. Consolidated revenues rose 41.3% during the same period, or from 6.93 billion pesos to 9.79 billion pesos.