By Zinnia B. Dela Peña (The Philippine
Star) | Updated June 17, 2014 - 12:00am
MANILA, Philippines - DoubleDragon
Properties Corp. has inked an agreement to build two community malls in Iloilo
City in its bid to hit P1 billion in net income by 2016 through an aggressive
expansion program.
In a filing with securities
regulators, DoubleDragon said its unit,
CityMall Commercial Centers Inc., signed an agreement with the Iloilo
Commercial Development Corp. (ICDC) to lease two prime lots in Ungka, Pavia and
Tagbak, Jaro for a period of 26 years.
The properties, cover a total of 19,918 square meters.
The Pavia site, with an area of 1.19
hectares, is situated at the corner of the National Highway, which links the
Iloilo Downtown and the Iloilo International Airport, and the newly-created
access road which leads to Jaro, the busiest and the largest of all districts
of Iloilo City. It is also conveniently
located near several large-scale residential communities.
The Jaro site, on the other hand, is
across the Tagbak bus terminal, which is the biggest transportation hub in
Iloilo.
ICDC is owned by the Iloilo-based Que
family, which operates the largest supermarket/community mall chain in the city
with seven branches.
The Que family has been in the grocery
retailing business for more than 30 years.
“The Que family owns several
properties for their expansion and were also planning to expand their own
community malls but decided to work with CMCCI instead, recognizing the synergy
that will be created by the partnership between (DoubleDragon) and ICDC,” the
newly-listed company said.
Double Dragon aims to be one of the
country’s largest property developers by 2020 with the construction of 100
CityMall community malls. It is
targeting a net profit of P4.8 billion by 2020 or nearly five times its projected
earnings for 2016.
CMCCI is 66 percent owned by
DoubleDragon (a 50-50 joint venture between
Injap Investments Inc. and Jollibee’s Tony Tan Caktiong) and 34 percent
owned by the Sy family’s SM Investments Corp.
Mang Inasal founder Edgar “Injap” Sia
II owns Injap Investments.
The
group hopes to complete five CityMalls by the end of the year and open
20 new malls by 2015.
Double Dragon ended the first quarter
with a net income of P21.1 million or more than double the P9.8 million
reported in the same period last year.
Revenues likewise grew more than two-fold to P172.5 million.
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