DoubleDragon to raise P5B through corporate notes issuance
MANILA, Philippines – DoubleDragon Properties Corporation plans to raise P5 billion ($113.1 million) through the issuance of corporate notes in the first half of 2015.
The real estate firm is raising the funds primarily to finance the rapid expansion of its community mall developments.
The company intends to complete this fund raising within the first half of the year, Marianna H. Yulo, DoubleDragon chief investment officer, said from the sidelines of the Asia Finance Summit forum held on April 21.
“We are raising another P5 billion this year for the CityMall roll out. Hopefully we will close it within the first half of the year for the construction of new malls,” Yulo said.
No additional details were including the terms and conditions of the corporate bond sale.
Last year DoubleDragon raised P7.4 billion ($167.4 million) from issuance of 7-year fixed rate notes.
Yulo said the company would prefer to raise funds through the debt market instead of the equities market.
This is because it believes that the future valuation of the company’s shares will significantly increase as it completes its community mall and projects and real estate developments in the pipeline, she explained.
DoubleDragon is not ruling out dipping into the equities market down the line however.
“Eventually, to create liquidity once we move to the big board, and to get more foreign funds interested, we need to do something in the equities market,” Yulo said.
For this year, DoubleDragon is set to complete the construction of 25 CityMall projects.
DoubleDragon through its community shopping mall unit CityMall Commercial Centers Incorporated is aiming to have a chain of 100 community malls, mostly in tine Visayas and Mindanao areas, by 2020.
It is also set to open Dragon 8 Shopping Center in Divisoria in Metro Manila by June of this year.
DoubleDragon, is also developing a 33.4 hectare property located at the corner of EDSA and Macapagal Avenue in Pasay City into a mixed-use development.
The project, to be called Meridian Park, is envisioned as a themed commercial complex of buildings for BPOs/corporate offices and serviced apartments.
Yulo said that the company has started selling 1,000 units in the recently acquired 38-storey tower residential and office project of Globe Asiatique Realty Holdings Corporation that was foreclosed by Rizal Commercial Banking Corporation (RCBC).
She added that the project is already 70% sold.
DoubleDragon is a 50-50 joint venture between businessman Edgar “ Injap” Sia II and Jollibee group founder Tony Tan Caktiong and was listed with the Philippine Stock Exchange last year. – Rappler.com
$1 = P 44.25
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