DoubleDragon eyes to raise P14.7B, files for REIT IPO

DoubleDragon Properties Corp. is eyeing to raise P14.7 billion from the public listing of its own real estate investment trust (REIT).

In a disclosure to the Philippine Stock Exchange, DoubleDragon said its DDMP REIT Inc, formerly DD-Meridian Park Development Corp., will be offering to the public 5,942,488,469 common shares with an over-allotment option of up to 594,248,847 common shares for up to P2.25 per share.

The DoubleDragon filed the initial public offering (IPO) of DDMP REIT with the Securities and Exchange Commision on November 23, 2020. It said the offer is “subject to receipt of regulatory approvals, execution of definitive agreements and market conditions.”

“Majority of the proceeds will be infused as equity into CentralHub Industrial Centers Inc. to increase its leasable industrial warehouse space and footprint nationwide. The warehouse complexes are designed for use as warehouses, cold storage facilities, commissaries, or as logistics and distribution centers,” DoubleDragon said.

“As stated in the draft Reinvesment Plan attached to the preliminary REIT Plan filed, 100% of the combined shareholders’ proceeds from the REIT IPO will be reinvested in the Philippines, as required by relevant regulations,” it said.

The Republic Act No. 9856 or the Real Estate Investment Trust Act of 2009 allowed companies to list their real property assets on the Philippine Stock Exchange as a new vehicle to raise funds for other investments and expansion initiatives.

As an asset class, REITs are required to declare dividends of at least 90% of its distributable income.

DDMP REIT will include the first six completed buildings in the DD Meridian Park as part of its income-generating real estate assets.

The DD Meridian Park is walking distance to the LRT/MRT stations and houses prominent tenants including the head office of the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) and the head office of the Philippine Economic Zone Authority (PEZA).

DoubleDragon has mandated Credit Suisse, DBS, Nomura & PNB Capital to act as Joint Global Coordinators and Joint Bookrunners together with RCBC Capital, ICCP, Macquarie, Maybank Kim Eng and CIMB for the REIT IPO. —KBK, GMA News