Solid stakes
WHEN DoubleDragon Properties Corp. (DoubleDragon) debuted on the local bourse in 2014, its Chairman and Chief Executive Officer Edgar “Injap” Sia II said it was because the company needed to tap capital markets to quickly address “the gap in the branded provincial community mall space.”
It raised P1.16 billion from 579.73 million initial public offering (IPO) shares priced at P2 apiece. A day after its debut, shares of the company grew by 50% to P3 apiece and went on to surge by 2,500% three years after, beating over 400 other property developers worth around $500 million in the region.
“We knew then that the window of opportunity was just for a few years so we have to fill it up as soon as possible, which we are thankful that by now CityMall is already well-positioned to capture the community mall segment in the Philippines,” Mr. Sia said in an e-mail to
DoubleDragon, a 50-50 joint venture between Injap Investments, Inc. headed by Mr. Sia and Honeystar Holdings Corp. chaired by Jollibee Foods Corp. founder Tony Tan Caktiong, is among the top five listed companies in the Philippine Stock Exchange today in terms of market capitalization, after it reached over $2 billion less than two years from its IPO. It currently operates community malls in provincial areas under its subsidiary “CityMall,” which is a partnership with SM Investments Corp.
The developer envisions one-million-squaremeters of leasable space by 2020, 700,000 of which will be coming from the roll-out of 100 CityMalls in the country. CityMall is poised to become the largest independently branded community mall chain in the country. The remaining 300,000 will be coming from two office projects in Metro Manila: the DD Meridian Park in the Bay Area and the Jollibee Tower in Ortigas CBD.
In its latest investor notice, the management team said DoubleDragon has already secured over half of the prime commercial lots it needs for its CityMall expansion in second- and third-tier provincial cities, and 100% of the land needed for office developments in the Metro.
Its land bank has already grown to over 65 hectares, essentially securing over two-thirds of its 2020 development requirements. It has also developed and is now operating nine malls including Dragon8 Mall in Divisoria and eight CityMalls across Luzon, Visayas, and Mindanao.
DoubleDragon’s total assets grew by 50% to P27.8 billion in 2015 while total equity grew by 10% to P8.6 billion in 2015. Its consolidated net income grew by 11% to P623 million in 2015 while achieving a 20% return on equity.
“DoubleDragon will turn three years since IPO this April yet, and our whole team has been focused on getting all fronts of the company to progress forward,” Mr. Sia said. “This year would be the year with the most project completions and openings, and we are glad that by this year, most of the start-up things to do is already past our back and we expect the company’s significant recurring rental revenue stream to kick in starting next year.”
For him, the best way to achieve both their short- and long-term vision is through “passionate execution.” He explained that he is a firm believer of the power of recurring revenue with solid underlying assets, as well as in the power of building brands that leave a positive impact in society.
Asked about his projections for the Philippines’ real estate market, Mr. Sia said he believes the industry will remain strong “especially in the countryside,” where the land prices have a lot of room to grow.
“We are confident in the prospects and potential of the provincial areas of our country,” he ended.