Listed property developer DoubleDragon Properties Corp. is looking to raise more funds before the end of the year through the issuance of another P10 billion in retail bonds, a top company official said.
On the sidelines of the firm’s annual stockholder’s meeting on Thursday, DoubleDragon Chairman and Chief Executive Officer Edgar Sia 2nd told reporters that the firm is looking to raise more funds for its capital expenditures for the following year.
“We might do another fundraise. Most likely, we might do a retail bond towards the end of the year, towards our capex requirements for next year,” Sia said.
The chairman noted that the firm is looking at offering P10 billion worth of long-term retail bonds by the end of the year, which will be in line with its plans of achieving its goal of one million square meters of leaseable space by 2020.
“Long-term retail bond. That’s our initial plan. That would be mostly the fundraising in relation to our 1 million square meter of leaseable space,” Sia said.
Sia noted that the firm has already raised enough fund for this year’s capex requirements, through its recently issued P10 billion worth of preferred shares.
“The preferred shares that we recently raised are enough for the capex requirements now until early next year,” Sia stressed.
In the same interview, Sia also said the firm is on track with its target of hitting P1 billion in net income.
In 2015, the firm posted a net income of P623 million, an 11 percent increase from the P561 million registered in the previous year.
Sia said the firm would hopefully reach its P1 billion goal by this year.
“This year hopefully. We are confident we can reach that goal,” Sia said.
Construction on track
Meanwhile, Sia mentioned that the firm is on track with construction of its CityMalls, which are community malls located outside of Metro Manila.
In line with meeting its target of one million square meters of leaseable area, DoubleDragon has set of goal of opening 100 CityMalls by 2020. At present, the company has eight operating CityMall developments, while 24 are currently under construction.
For the second half of 2016, Sia said the company intends to build 22 more CityMalls to reach its target of having 30 CityMalls by the end of the year.
Sia emphasized that the target of 30 malls refers to the constructed number of malls, and not the number of opened CityMalls.
The chairman noted that more than half of the locators in each CityMall branch started their operations during the opening of the mall development.
“It is our standard operating procedure to make sure that at least 70 percent of the locators will be opened on the same day that we open the mall,” Sia emphasized.
“The opening date will still have to be determined, but we are in line with our goal of completing a total of 30 by the end of this year in terms of construction,” Sia added.
DoubleDragon recently reported that it has already secured 50 sites for its CityMall developments.
The roll out of 100 CityMalls will translate to a total of around 700,000 square meters of leasable space, with each mall offering 7,000 square meters of leaseable space on average.
Aside from the CityMalls, the firm is also building two office projects in Metro Manila, the DD Meridian Park in the Bay City, which offers around 280,000 square meters of leaseable space, and the Jollibee tower in Ortigas, which will encompass about 47,000 square meters of leaseable space.
At present, DoubleDragon said it has secured over two-thirds of the prime land it needs to meet its target of one million square meters of leaseable space in the retail and office sector by 2020.