By Jenniffer B. Austria | Oct. 31, 2014 at 11:01pm [ manilastandardtoday.com ]
DoubleDragon Properties Corp. said Friday it raised P7.4 billion from the issuance of seven-year fixed-rate notes.
DoubleDragon said in a disclosure to the stock exchange it increased the size of the note issue to P7.4 billion, from the original size of P6.5 billion, because of strong demand among institutional investors.
It said proceeds would be used to finance capital expenditures primarily for rollout of community malls as well as office and leasing businesses including DoubleDragon Plaza at the Meridian Park, Dragon8 Shopping Center-Divisoria and The Skysuites tower.
DoubleDragon Properties chairman Edgar “Injap” Sia, in a statement, welcomed the support received for the company’s fund-raising activity.
“We are glad that the great long-term potential of DoubleDragon Properties Corp. has been recognized,” Sia said.
BDO Capital and Investments Corp. facilitated the corporate notes issuance.
BDO Capital president Eduardo Francisco said many banks participated in the notes issuance, although he did not identify them.
This is the first fund-raising activity of DoubleDragon, after its initial public offering in March which raised P1.16 billion in proceeds.
DoubleDragon plans to expand its community mall chain CityMall mostly in the underserved provincial areas around the country.
DoubleDragon is a 50-50 joint venture company of Sia’s Injap Investments Inc. and Honeystar Holdings Corp. of Jollibee Foods Corp. chairman Tony Tan Caktiong.
The company, through its 66-percent owned community shopping mall unit CityMall Commercial Centers Inc., aims to roll out 100 CityMall stores by 2020 mostly in Visayas and Mindanao.
The 100 CityMall stores will have total gross floor area of 700,000 square meters.
The company expects to invest P24 billion to develop the 100 CityMalls.
DoubleDragon also announced a plan to develop a 33.4-hectare property located at the corner of Edsa and Macapagal Avenue in Pasay City into a mixed-use development.
The project to be called Meridian Park is envisioned to become a themed complex of buildings for business process outsourcing companies, corporate offices, commercial complex and serviced apartments.
It also recently acquired the 38-story tower of Globe Asiatique Realty Holdings Corp. in Quezon City that was foreclosed by Rizal Commercial Banking Corp.