DoubleDragon signs JV deal with Davao’s Alcantara Group for CentralHub project

PROPERTY developer Double-Dragon Properties Corp. on Tuesday said its unit has signed a joint venture agreement with the Alcantara Group to establish its industrial complex in Davao City.

The Central Hub-Davao project will be 70 percent owned by Central Hub Industrial Centers Inc. and 30 percent by Alsons Development and Investments Corp., the company said. The industrial complex has an area of 8.2 hectares and has a capacity of 40,392 square meters (sq m) of leasable warehouse space.

This will be the first of Double-Dragon’s industrial complex in Mindanao and the company’s fourth nationwide, following projects in Cebu, Iloilo and Tarlac.

A total of 23.3 hectares of prime industrial land has been acquired by Central Hub with a total capacity of 121,626 sq m of leasable industrial warehouse space.

“Double Dragon makes sure it focuses only in ‘sunrise’ sectors within the real-estate industry that is expected to remain relevant in at least the next 50 years. The company has been focused on building up its portfolio of prime hard assets that can generate high double-digit rental yields and deploy capital only in select prime properties that can appreciate five to 10 folds in the next five years to 10 years,” said Edgar Sia II, the company’s chairman.

Central Hub is envisioned to become the leading provider of industrial warehouses in the Philippines through the development of its first eight complexes by 2020. These are projected to have a total capacity of up to 400,000 sq m of warehouse leasable space. Each will contain modern standardized multi-use warehouses suited for commissaries, cold storage, light manufacturing and logistic distribution centers. The company aims to have at least 100,000 sq m of leasable industrial warehouse space across these eight sites completed by 2020.