PROPERTY developer DoubleDragon Properties Corp. said on Monday it has raised P5 billion from the debt market to finance the community mall expansion program of its subsidiary City Mall Commercial Centers Inc. (CMCCI).
“(The notes issue) signifies strong confidence in DoubleDragon’s strategic direction and will add momentum to the company’s target rollout of 100 CityMalls by 2020,” it said in a disclosure to the Philippine Stock Exchange.
“DoubleDragon’s financial leverage ratios remain healthy with debt-to-equity at 1.07x and net debt-to-equity at 0.58x as of the end of December 2014. With the addition of the P5 billion in 7-year corporate notes, the company will continue to have sound financial leverage ratios,” it said.
The company is targeting 25 CityMalls this year which it expects to complete in June. Majority of the malls are nearing completion and “CityMall is poised to become the largest independent chain of community malls in the country,” it said.
CMCCI is two-thirds or 66 percent owned by DoubleDragon, while the Sy family of conglomerate SM Investments Corp. owns 34 percent.
The company has 20 CityMall locations undergoing late construction phase. CityMalls is expected to eventually have 100 malls by 2020.
Malls under 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.
In 2014, DoubleDragon booked P560 million in net income, a four-fold surge from P122.1 million in 2013. DoubleDragon aims to hit a net income of P1 billion 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.