MANILA – DoubleDragon has revised its 2020 vision upwards. from accumulating 1,000,000 square meters of leasable space to 1,200,000 square meters.
The new 2020 vision now includes an additional 100,000 square meters of leasable space from Industrial Leasing through Central Hub Industrial Centers Inc. and another 100,000 square meters (5,000 rooms) from Hospitality/Hotels through Hotel 101 and Jinjiang Inn brands.
This is in addition to the 700,000 square meters of commercial retail leasing through CityMalls, and 300,000 square meters of office leasing from DD Meridian Park and Jollibee Tower. This increase in leasable space is expected to improve the Company’s 2020 net income target from the previously announced P4.8 Billion to P5.5 Billion.
“We are glad that DoubleDragon now has 4 strong legs in various property spectrums namely commercial retail leasing, office leasing, industrial leasing, and hospitality, which will provide the company with a diversified source of recurring revenues backed by a string of appreciating hard assets,” said DoubleDragon chairman Edgar “Injap” Sia II.
DD seeks to form a wholly-owned subsidiary, Central Hub Industrial Centers, Inc. as its industrial leasing arm. Central Hub is envisioned to be a branded standardized multi-use warehouse chain suited for commissaries, cold storage and logistic centers.
The Company will incorporate Central Hub Industrial Centers Inc. (“Central Hub”), to serve as DoubleDragon’s industrial leasing arm. DoubleDragon intends to dominate the branded industrial leasing industry in the near term through the development of Central Hubs in North Luzon, South Luzon, Visayas and Mindanao.
The Central Hub chain will contain standardized multi-use warehouses suited for commissaries, cold storage and logistic centers, some of which will be built to the specifications for large commissary, cold storage and logistics locaters. DoubleDragon intends to have the first 100,000 square meters of leasable industrial space completed by 2020.
The Board of Directors of DoubleDragon has just approved plans for a follow on offering of up to P7.5 billion or 150,000,000 common shares which is expected to enhance trading liquidity and further strengthen its balance sheet with higher equity levels. The Company aims to be included as one of the blue chip stocks in the PSEi in the near term.
Last September 2016, DoubleDragon was one of five listed companies included in the PSEi reserve list due to the growth in the company’s market capitalization. Steady trading activity in the stock is one of the important criteria in its inclusion in the PSEi and the company believes that a follow on offering will not only increase trading volumes in the stock, but will also allow the entry of a good base of institutional investors to further strengthen the position of DD in the international investment community.
The follow on offering will also result in the increase of the company’s total equity that will further strengthen its financial position. As of March 31, 2017 the company’s total equity stands at P19.96 billion with total assets at P49.7 billion.
“This planned follow on offering will be very timely because for the past two years, the company has been very active in numerous international roadshows and conferences, and we have met with over 300 institutional investors across the world. The planned offering will provide them the opportunity to secure a position in DoubleDragon during its high growth years.” said Hannah Yulo, DoubleDragon Chief Investment Officer./PN