LISTED property developer DoubleDragon Properties Corp. expects to complete the construction of two of its office developments—DoubleDragon Plaza at DD Meridian Park in the Bay Area and Jollibee Tower at the Ortigas Central Business District—by 2018 following its successful P10 billion preferred share offering.
The company said the offer was five times oversubscribed as it has so far received P26 billion worth of demand, or five times the base offering of P5 billion.
Under the offer terms, 100 million preferred shares with a subscription price of P100 per share are on offer, with an initial base offer of 50 million shares worth P5 billion, plus an oversubscription option of another 50 million shares worth P5 billion. The dividend rate was set at 6.4778 percent per annum.
The company’s application to raise P10 billion through a share offer was given the go signal by the Securities and Exchange Commission (SEC) on Monday, and on Tuesday the company said in a disclosure to the Philippine Stock Exchange (PSE) that proceeds of the fundraising will be used to partially finance the development of its ongoing projects.
“The proceeds of the Offer will be applied as paid-in capital for the Corporation’s proposed application for increase in Authorized Capital Stock, and upon approval by the SEC, the proceeds will be subsequently used to partially finance the development of CityMalls, DoubleDragon Plaza at DD Meridian Park, Jollibee Tower and The SkySuites Tower,” DoubleDragon said.
“Once the Preferred Shares have been created and subsequently issued, at the option of the Holder, the Preferred Shares may be converted in DoubleDragon’s Common Shares at a rate of one Preferred Share with a par value of P100 per share to one Common Share at any time starting on the 2nd anniversary of the Issue date up to the fifth anniversary of the Issue date,” Double Dragon said.
DoubleDragon said it is simultaneously constructing 25 CityMalls across various provinces in the country.
At present, it said it has already secured over two-thirds of its needed land bank to achieve its 2020 goal of 1 million square meters of leasable space.
The company said that 70 percent of this will come from the development of 100 CityMalls across various provinces, of which it has already secured 45 prime commercial city center sites, while the remaining 30 percent will come from its office development initiatives, specifically from the DD Meridian Park and the Jollibee Tower.