Double Dragon Properties Corp., the property development firm led by Edgar Sia II, has filed for the initial public offering (IPO) of its own real estate investment trust (REIT), hoping to raise as much as P14.7 billion from the sale of shares.
The company called DDMP Reit Inc. will sell 5.94 billion common shares and an over-allotment option of 594.24 million shares to be sold at P2.25 apiece.
The company has mandated Credit Suisse (Singapore) Ltd., DBS Bank Ltd., Nomura Singapore Ltd., and PNB Capital and Investment Corp. to act as global coordinators together with CIMB Investment Bank Bhd., Investment and Capital Corporation of the Philippines, Macquarie Capital Securities (Singapore) Pte. Ltd., Maybank Kim Eng Securities Pte. Ltd. and RCBC Capital Corp.
“Majority of the proceeds will be infused as equity into CentralHub Industrial Centers Inc. 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 centers,” the company said in its registration statement.
DDMP will include the first 6 completed buildings in DD Meridian Park. The buildings are recently built and LEED Gold Certified in the case of the 4 towers of DoubleDragon Plaza while DoubleDragon East and West are currently pre-certified LEED Silver with above standard specifications. The buildings use LED lights and is partially powered by a solar installation located in its roof deck. The location is walking distance to the LRT/MRT station and houses prominent tenants including the head office of the Tourism Infrastructure and Enterprise Zone Authority and the head office of the Philippine Economic Zone Authority.
DD Meridian Park also includes two development properties, DoubleDragon Tower and Ascott-DD Meridian Park, which have been leased out to DD Tower Inc. and DDMP Serviced Residences Inc., respectively, on a long-term lease basis.
The company said DoubleDragon Tower and Ascott-DD Meridian Park are potential expansion projects to add to its asset portfolio once cash flows from operations of these properties stabilize.
The company expects its REIT to be listed at the Philippine Stock Exchange in February next year.