DOUBLEDRAGON Properties Corp. has raised P7.4 billion from the issue of seven-year fixed rate corporate notes for its expansion projects.
In a statement, DoubleDragon said it raised the corporate notes issue to P7.4 billion from P6.5 billion because of strong institutional demand.
The fresh capital will finance the development, construction and expansion of the company’s chain of CityMalls. It will also be used for other projects including the DoubleDragon Plaza at The Meridian Park, Dragon8 Shopping Center-Divisoria, The Skysuites Tower, and for general corporate purposes.
“We are glad that the long-term potential of DoubleDragon Properties Corp. has been recognized,” said Edgar “Injap” Sia II, DoubleDragon chairman.
The fundraising exercise was facilitated by BDO Capital & Investment Corp.
Under its subsidiary CityMall Commercial Centers Inc. (CMCCI), the company has 13 community malls under construction: the one hectare CityMall in Boracay; 8,000 square meters (sqm) lot in Tiaong, Quezon; 1.1 hectares in Kalibo, Aklan; 1.5 hectares Cotabato City lot; half a hectare prime commercial lot in Dau, Mabalacat, Pampanga; 2 hectares in Anabu, Imus, Cavite; 1.19 hectares in Ungka, Pavia in Iloilo; 0.8 hectare or 8,000 sqm in Tagbak, Jaro in Iloilo; 1.1 hectares in Cebu Downtown; 1.02-hectare in Consolacion, Cebu City; two others in Zamboanga City; and one in Roxas City, Capiz.
CMCCI plans to put up 25 CityMalls by end-2015 and 100 CityMalls by 2020, mostly in the Visayas, Mindanao, northern Luzon, Bicol, Mindoro and Palawan.
CMCCI is two-thirds or 66 percent owned by DoubleDragon, while 34 percent is owned by the Sy family-led conglomerate SM Investments Corp.
DoubleDragon, on the other hand, is targeting a total of 1 million sqm of gross leasable space by 2020, of which 700,000 sqm will come from the 100 CityMalls; 200,000 sqm from the DoubleDragon Plaza project at The Meridian Park site in Pasay City; and the 100,000 sqm from other existing and near-term developments.
DoubleDragon’s acquisitions in the past year include the two 38-story The Skysuites Tower, 70-percent stake in Western Visayas-based real estate developer Zion Land Development Ph Inc. and the 4.5-hectare Pasay City lot for The Meridian Park project to be completed by 2020.
In line with this, DoubleDragon aims to hit P1 billion net profit by 2016 and P4.8 billion by 2020.
The company has five subsidiaries: Zion Land, DoubleDragon Sales Corp., One Eleven Property Management Corp., Piccadilly Circus Landing, Inc. and CMCCI.
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.