Property developer DoubleDragon Properties Corp. is moving up to the main board of the Philippine Stock Exchange (PSE), more than a year since it debuted on the Small, Medium and Emerging (SME) Board.
In a statement late Monday, DoubleDragon said the PSE granted the stock’s transfer to trade alongside the largest companies in the Philippines on the main board after its financial position improved substantially over the past 14 months since its initial public offering (IPO) and listing in April last year.
The effective date of the transfer has yet to be set and announced by the PSE.
“We are grateful to the exchange for creating the SME Board, which has given us the opportunity to raise capital in the market when we were just starting to grow our business. We are, likewise, thankful to all our shareholders for their belief in our vision and the support that was clearly felt during our IPO last year,” Edgar “Injap” Sia II, DoubleDragon chairman, said.
As of press time, the company is the 10th largest property developer in the Philippines in terms of market capitalization. It aims to become one of the top five property companies in the country Philippines by 2020.
To achieve this, DoubleDragon is focusing on the expansion of gross leasable space to 1 million square meters or 100 hectares in the next five years from 100 CityMalls being rolled out across the country and from the DD Meridian Park. The DD Meridian is a 4.8-hectare mixed-use development that is expected to contribute more than 280,000 square meters of leasable area once completed.
The company is keen on growing its recurring income portfolio of offices and malls to “allow investors to participate in the long-term upswing of the Philippine property market.”
“I am confident that the dynamic DoubleDragon team and our supportive shareholders are one in our goal of putting together the building blocks to form a strong company that will stand the test of time. I am also a strong believer in embarking on ventures that are bound to remain sustainable and remain relevant for many decades to come,” Sia said.
“The major community mall evolution and consolidation in the provincial areas of the Philippines have just begun, and we are excited that the company is currently leading the way in becoming the dominant leader in that space, especially in the next wave provincial areas. We believe that the company had already positioned to largely benefit from this rare realignment that is forming,” he added.
CityMalls is being developed by CityMall Commercial Centers Inc., which is two-thirds or 66 percent owned by DoubleDragon and 34-percent by the Sy family-led conglomerate SM Investments Corp.
Aside from CityMalls mostly in the provinces and the DD Meridian Park, other DoubleDragon projects in the metro included WH Taft Residences, The Skysuites Tower, and Dragon8 Shopping Center.
“We are looking forward to achieving even better trading multiples as we enter the big league and navigate through this exciting high growth stage over the next several years,” said Hannah H. Yulo, DoubleDragon chief investment office and senior vice president for corporate finance.
“We believe that as several of our projects around the country near their completion, coupled with the positive development of the PSE’s approval for DoubleDragon to move up to the Main Board, the company will become even more relevant to long term investors that recognize DoubleDragon’s exceptional growth potential,” she added.
To date, the company has 20 CityMall locations going through the late construction phase. CityMalls is expected to expand to 25 malls by the end of this year, and further to 100 malls by 2020.
Ongoing malls construction are in Bacolod City; Boracay; Tiaong, Quezon province; Kalibo, Aklan; Cotabato City; Dau, Mabalacat, Pampanga; Anabu, Imus, Cavite; Ungka, Pavia in Iloilo; Tagbak, Jaro in Iloilo; Cebu Downtown; Consolacion, Cebu City; Zamboanga City; and Roxas City, Capiz, among others.
The company aims to hit the P1 billion net income mark by end-2016 and P4.8 billion by 2020.
DoubleDragon is a joint venture between Injap Investments Inc. headed by Edgar “Injap” Sia II, founder of the Mang Inasal grilled chicken restaurant chain, and Tony Tan Caktiong, chairman and founder of Jollibee Foods Corp.
It has five subsidiaries: Zion Land Development Ph Inc., DoubleDragon Sales Corp., One Eleven Property Management Corp., Piccadilly Circus Landing, Inc. and CMCCI.