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Property firm planning P1.16-B IPO

DoubleDragon Properties Corporation, the real estate joint venture of Edgar “Injap” Sia II and Jollibee Foods Corporation founding Chairman Tony Tan Caktiong, is planning a P1.16-billion initial public offering (IPO) to fund the development of a community mall chain.

In a statement, the firm said it has formally filed its IPO application with the Securities and Exchange Commission to offer up to 579.73 million primary shares for up to P2.00 per share.

The offer shares will comprise 26 percent of DoubleDragon’s post IPO capital of 2.23 billion shares and a market capitalization of P4.46 billion. The firm is currently a 50-50 joint venture between Injap Investments Inc. and Tan Caktiong’s Honeystar Holdings Corporation.

Proceeds from the IPO will be used by the company to fund its prospective residential, commercial, and mixed-use real estate developments. A huge portion of the proceeds will jumpstart its flagship project, the CityMall.

CityMall is envisioned to become one of the largest independent branded community mall chains in the Philippines with a target of 100 malls by the year 2020.

Each mall will have a floor area of about 5,000 to 10,000 and will be located in prime locations all over the country, mostly in the Visayas and Mindanao.

All CityMalls will generally have the same theme, color and look, making the mall design a brand in itself. The food area will be a food court concept to complement the existing full-sized fast food stores near CityMall.

The food area will not only provide premium food court spaces to the top fastfood brands but also to other non-food anchor retail tenants that will complement the whole development.

A supermarket area will be offered to the top supermarket chains in the country such as SaveMore, Robinsons, Puregold, Wellcome and Super 8.

DoubleDragon has recently acquired 12,654 square meters of commercial land in Arnaldo Boulevard in Roxas City which will be the site of the first CityMall community malls.

Other than the CityMall chain, DoubleDragon also plans to complete three office towers in the next six years in different central business districts in Metro Manila which will be leased out to corporate and BPO tenants.

The firm also intends to further expand its foray in both horizontal and vertical residential real estate development.

It posted a consolidated net income of P126.63 million in 2013, 37 percent higher than the P92.48 million earned in 2012.