DoubleDragon taps senior guaranteed bonds for funds

Property developer DoubleDragon Properties Corp. on tuesday said it is raising some $75 million from its offering of five-year senior guaranteed bonds.

In its disclosure, DDPC Worldwide Pte. Ltd., the company’s unit that will issue the debt, has executed a subscription agreement with Credit Suisse (Singapore) Ltd. as sole global coordinator, joint lead manager and joint book runner and PNB Capital and Investment Corp. as joint lead manager and joint book runner, for the issuance of its debt that has a yield of 7.5 percent due on 2025.

The bonds will be listed on the Singapore Exchange Securities Trading Ltd.

The proceeds of this new fiveyear dollar bonds offering and the planned P16.97-billion initial public offering (IPO) of its own real estate investment trust later this year are expected to increase the cash position of the company, it said.

DoubleDragon has 803,738 square meters of completed leasable space, which comprise 80 percent of the 2020 target set during the IPO, coming from having zero leasable space when it listed in April 2014.

DoubleDragon income fell 39 percent during the three months of the year ending March to P744.74 million from last year's P1.21 billion. Revenues also fell 28 percent to P1.91 billion from last year's P2.66 billion.

The fall in its net income is due to one-off fair value gains during the first quarter of 2019 stemming from the completion of Double Dragon Center East, the company said.

DoubleDragon’s recurring revenues rose 20 percent to P927.91 million from P769.99 million last year, as its rental revenues grew.

Recurring revenues now account for almost half or 48 percent of the company’s consolidated revenues from only 29 percent last year as it continues its shift towards its goal of becoming a 90 percent recurring revenue company.