Listed property developer DoubleDragon Properties Corp. is moving to make commercial leasing, such as that of its CityMalls joint venture with SM Investments Corp. across the country, its bread and butter.
Chairman and Chief Executive Officer Edgar “Injap” Sia II told reporters on Tuesday that DoubleDragon is on track with its goal of developing one million square meters of leasable land by 2020, which is eyed to be the source of 90 percent of the firm’s income.
Sia said the company is aiming to get 90 percent of its revenues and net income from recurring earnings by 2020.
He said DoubleDragon is thus now focusing on three major projects: the CityMalls, The DD Meridian Park, and the Jollibee Tower.
The listed firm’s shareholders approved on Tuesday an increase in authorized capital stock from P500 million to P2.5 billion.
Sia said majority of the proceeds from the capital increase would go to the development of the three projects.
In a disclosure to the Philippine Stock Exchange, DoubleDragon the increase in its capital stock would be through the issuance of 200 million preferred shares valued at P100 each.
Sia said the completion of the three major projects alone would rake in more than one million square meters of leasable land.
One CityMall branch would measure an average of 7,000 square meters, bringing the total size of DoubleDragon’s 100 CityMalls to around 700,000 square meters by 2020.
The now being constructed DD Meridian Park, a mixed-use development near Mall of Asia, is estimated to have a total area of around 280,000 square meters.
The 40-storey commercial and corporate project Jollibee Tower in Ortigas business district, meanwhile, will consist of around 47,000 square meters of leasable space.
“So the CityMall, DD Meridian Park, and the Jollibee tower combined, once fully developed in the next five years, will be over one million square meters,” Sia pointed out.
The CEO said the company plans to open 25 CityMalls annually, starting this year, to achieve its goal of operating 100 CityMalls by 2020 or even earlier.
This would bring the total number of operating CityMalls to 30 by the end of 2016, as it opened five CityMall branches last year.
“This year, once we’ve completed the 30[branches], we will be the largest community mall operational,” Sia said. “Hopefully, we’ll maintain that pace. That’s going to be more than enough.”
The CEO also pointed out that all the CityMall branches would be located outside of Metro Manila, 70 percent of which would be in Visayas and Mindanao.
Sia said DoubleDragon has so far secured 41 CityMall locations.
He said for the past two years, DoubleDragon has been getting most of its revenue from residential projects, such as the W.H. Taft Residences.
He said the leasing business gives one a recurring income, whereas selling provides just a one-time gain.
CityMall Commercial Centers Inc. is a 66-percent owned subsidiary of DoubleDragon. Henry Sy’s SMIC has 34-percent stake in the community mall operator.