SM, Jollibee enter joint venture for ‘community’ malls

Rappler.com
SM signs an investment agreement to acquire 34% of CityMall Commercial Center Inc., partly owned by Jollibee Foods Corporation

JOINT VENTURE. SM Investments Corp acquired a 24% interest in CityMall, an arm of Jollibee and Injap Investments' DoubleDragon properties

MANILA, Philippines – SM Investments Corporation (SMIC) acquired a 34% stake in CityMall Commercial Center Inc. (CMCCI), the community mall arm of Jollibee Foods Corporation and Injap Investments Inc.

SMIC, owned by the country’s richest man Henry Sy, disclosed to the Philippine Stock Exchange on Monday, February 17, its investment agreement to acquire the stake from DoubleDragon, a 50-50 joint venture between Jollibee, led by Tony Tan Caktiong, and Injap Investments of Edgar “Injap” Sia II.

SMIC said DoubleDragon will continue to own the remaining 66% of CMCCI and will also hold management of the mall company.

CMCCI is envisioned to become one of the largest branded independent community mall chains in the country, with 5,000 to 10,000 square meter prime locations in various parts of the Philippines, though primarily in Visayas and Mindanao. Around 100 CityMalls are planned between now and 2020.

CMCCI recently acquired 12,654 square meters of commercial land in Arnaldo Boulevard, Roxas City. At the site will rise the first of CityMall community mall, which is expected to be completed by December 2014.

DoubleDragon is also planning to complete 3 office towers in the next 6 years in different business districts in Metro Manila. These would be leased out to corporate and outsourcing tenants. It also intends to expand to residential property developments – horizontal and vertical – as well as other property-related ventures.

DoubleDragon also filed an application with the Securities and Exchange Commission and the Philippine Stock Exchange to conduct a public offering to raise as much as P1.16 billion.

The company will offer 579,730 commons shares for up to P2 per share, with the offered shares accounting for 26% of the company’s outstanding capital stock of P2.22 billion.

SMIC, on the other hand, plans to issue up to P15 billion in fixed-rate peso retail bonds. These will be used to refinance maturing debt, as well as for some expansion projects. The bonds will be offered in one or two tranches, with tenors of 7 and/or 10 years. BDO Capital and Investment Corporation is the issue maneger for the offering. – Rappler.com

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