Doubledragon pegs price of REIT IPO at ₧2.25/share

DDMP REIT Inc., the real estate investment trust (REIT) of Double Dragon Properties Corp., on Monday set P2.25 per share as its final offer price for its initial public offering (IPO), the higher end of its price range.

The company said in a statement that the price was due to “strong” demand for its shares during its book building process.

“The DDMP basket is seen to be a compelling REIT offering since it will include the land, a premier corner lot located along the main thoroughfares of Macapagal Avenue, EDSA Extension

and Roxas Boulevard, where the first six completed buildings sit on,” Double Dragon chairman Edgar Sia II said.

“This feature is expected to be a game changer since the value of the prime double corner 4.75 hectare block of land with titled land ownership to be held in perpetuity should keep on appreciating decade after decade, a very important inclusion for both domestic and foreign investors.”

The projected dividend yield of the company is at 5.07 percent for this year and 5.45 percent for next year.

“When there is underlying titled land ownership included in the REIT shares, even a hundred years from now it should keep its hard value intact. We see DDMP shares as a ‘Pamana Stock’ that even our future grandchildren will be happy to inherit,” Sia said.

The Securities and Exchange Commission approved the initial public offering (IPO) of the real estate investment trust (REIT) mainly sponsored by Doubledragon Properties Corp. last month.

In its en banc meeting, the agency approved the registration statement of DDMP REIT Inc. for the listing of 17.82 billion common shares on the main board of the Philippine Stock Exchange (PSE). The company placed a maximum offer price at P2.25 per share, or a total of P14.7 billion in fresh funds.

DDMP intends to conduct the IPO from March 5 to 11 and list at the PSE on March 19, based on the latest timetable submitted to the SEC.

Credit Suisse (Singapore) Ltd., DBS Bank Ltd., Nomura Singapore Limited and PNB Capital and Investment Corp. will act as joint global coordinators for the REIT offering.

The global coordinators will concurrently serve as joint bookrunners, along with CIMB Investment Bank Bhd., Investment and Capital Corp, of the Philippines, Macquarie Capital Securities (Singapore) Pte. Ltd., Maybank Kim Eng Securities Pte. Ltd. and RCBC Capital Corp.