DoubleDragon plans retail bond issue by mid 2017
DOUBLEDRAGON Properties Corp. plans to issue retail bonds by middle of the year to finance the completion of its goal of developing leasable properties spanning one million square meters (sq.m.) after earnings more than doubled last year.
Hannah M. Yulo, chief investment officer of DoubleDragon, said in a mobile phone message last Friday the developer plans to raise P9.7 billion from the sale of 10-year retail bonds.
“We have already prepared for it via a shelf registration of retail bonds previously approved by the Securities and Exchange Commission which we hope to launch by the middle of this year,” Ms. Yulo said.
The securities form part of a P15-billion shelf offering and will be the last fund- raising initiative to cover development costs toward 2020. The company tapped the first tranche of the offer last December through a P5.3- billion bond issuance.
So far, DoubleDragon has raised 75% of its required capital to execute its target of building one million sq. m. of leasable space, mainly through CityMalls, by 2020, allowing DoubleDragon to generate a net income of P4.8 billion by that period.
DoubleDragon clocked in a net profit of P1.47 billion last year, surpassing the P1-billion goal for that period and 136% higher than the P623 million in 2015.
Recurring revenue tripled to P347.6 million from P116.5 million. By 2020, 90% of its revenues will be coming from recurring sources driven by rental revenues.
DoubleDragon has 15 operational CityMalls nationwide, with over 30 more simultaneously under construction. Ten more CityMalls will open to the public in the third quarter and at least 30 CityMalls will be operational by the end of this year.
DoubleDragon is a joint venture between Injap Investments, Inc. of Edgar Sia II — the founder of the Mang Inasal — and Honeystars Holdings Corp. of Tony Tan Caktiong, chairman and founder of Jollibee Foods Corp.