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The founders of fast-food giants Jollibee and Mang Inasal are taking public this year their property development venture to raise funds and turn the company into one of the biggest players in the real estate sector.
In a press release, DoubleDragon Properties Corp said it filed last week an application with the Securities and Exchange Commission to undertake a P1.16-billion initial public offering (IPO).
DoubleDragon is selling up to 579.73 million primary offer shares at a maximum price of P2 per share, giving the real estate firm a market capitalization of up to P4.46 billion. The offer shares comprise 26 percent of the company’s outstanding capital stock.
DoubleDragon was previously known as Injap Land Corp, the real estate arm of Injap Investments Inc. DoubleDragon is now a 50-50 joint venture between Injap Investments eaded by Edgar “Injap” Sia II, the founder of Mang Inasal, and Honeystar Holdings Corp headed by Tony Tan Caktiong, the founder of Jollibee Foods Corp (JFC).
JFC acquired 70 percent of Mang Inasal in 2010 for P3 billion, with Sia retaining the remaining 30 percent.
“DoubleDragon is envisioned to become of the largest property company in the Philippines by 2020,” the company said.
A big chunk of the proceeds from the maiden share sale will bankroll the development of the company’s flagship project, the CityMall, which is envisioned to become one of the largest independent branded community mall chain in the Philippines. Double Dragon intends to build a hundred CityMall community malls by 2020.
The CityMall, which will have floor areas of approximately 5,000-10,000 square meters, will rise in prime locations nationwide, mostly in the Visayas and Mindanao. The first CityMall will be located on a 12,654 square meter property in Arnaldo Boulevrad, Roxas City that the company earlier acquired.
“All CityMalls will generally have the same theme, color and look, making the mall design a brand in itself,” DoubleDragon said.
The food area will have a “food court” concept to complement the existing full-sized fast food stores near CityMall. Apart from providing premium food court spaces to the top fastfood brands, it will also feature other popular non-food anchor retail tenants that will complement the whole development.
The supermarket area will be offered to the top supermarket chains in the country such as SaveMore, Robinson’s, Puregold, Wellcome and Super 8.
Other than the CityMall community mall chain, DoubleDragon plans to complete three office towers in the next six years in different central business districts in Metro Manila, for lease to corporate and business process outsourcing (BPO) tenants. The company also intends to expand its portfolio of horizontal and vertical residential projects.
“The board of directors of DoubleDragon has established expertise in brand-building of their respective retail businesses which is an advantage in the conceptualization, site selection, execution and operation of its property developments,” the company said.
DoubleDragon netted P126.63 million in 2013, 37 percent higher than the P92.48 million registered in 2012.
Source:http://www.interaksyon.com/business/79942/founders-of-jollibee-mang-inasal-to-take-public-their-joint-venture-property-firm
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