JOLLIBEE Foods Corp. on Wednesday said it signed an agreement with DoubleDragon Properties Corp. for the construction of Jollibee Tower in Ortigas Center.
The companies said in their respective disclosure that the project is a 40-story commercial and office tower that will be built by DoubleDragon on Jollibee’s 3,002-square-meter lot.
In exchange for the lot, Jollibee, whose founder Tony Tan Caktiong has close ties with Edgar Sia II, DoubleDragon chairman, will receive certain floors of the building for office, commercial and parking units.
“They will get certain number of floors in exchange for the land. So it’s one is to one; cost is to cost. Land value versus certain number of floors. The rest they will lease from us, and the remaining we’ll lease to others,” Sia told reporters at the sidelines of the company’s stockholders’ meeting.
“Hopefully, in the next 20 to 30 years, Jollibee will occupy the entire building. At the start, it’s just a few floors,” he said.
Construction will commence by the fourth quarter of this year, and will be completed within 2018.
Jollibee Tower’s ground floor will include commercial spaces and drive-through store provision to carry the company’s fast-food brands, while the second and third floors will house an event center. Selected floors will also be used to house some of Jollibee’s offices to augment existing office spaces.
The company has two other towers both located in Ortigas Center.
Its new tower, meanwhile, is expected to secure LEED, or Leadership in Energy and Environmental Design, certification.
Sia declined to give the total amount for the construction of the building, saying that will be determined in the next two to three months.
The new building will generate about P350 million in annual rental revenues to DoubleDragon, and complete its plan to build 300,000 sq m of leasable commercial and office space in Metro Manila.
The company is also accumulating some 700,000 sq m of leasable retail space outside of Metro Manila, mainly coming from the construction of about 100 of its brand of community malls to be built in second- and third-tier cities and towns.
“This will give DoubleDragon a balanced and healthy portfolio both in terms of location, having a good mix of Metro Manila and provincial projects, as well as preferred exposure to robust and high growth industries, such as retail and office,” it said.
It expects to operate some five community malls this year.
The company has already secured 42 hectares of prime properties across the country, which, once fully developed, will be able to deliver over 560,000 sq m of leasable space, it said.
The company has been vocal on its goal to build 1 million sq m of leasable space by 2020, and said it has already secured over half of the land it needs.