DoubleDragon 7-year notes issue raises P7.4 billion
October 31, 2014
DOUBLEDRAGON Properties Corp. on Friday said it raised P7.4 billion from the issuance of seven-year fixed-rate notes, with proceeds going towards building community malls, among other projects.
Capital expenditure will be allocated to the development of its chain of CityMalls mostly in provincial areas, with 100 malls targeted by 2020.
“Due to strong institutional demand, the company increased the note issuance to 7.4 billion pesos from the original P6.5 billion,” the property developer said in a statement attached to a disclosure to the stock exchange.
The transaction was facilitated by BDO Capital & Investment Corp.
The proceeds will also help finance the DoubleDragon Plaza at The Meridian Park, a mixed-use development project near the Mall of Asia complex in Pasay City; Dragon8 Shopping Center in Manila’s Divisoria district; and the Skysuites Tower in Quezon City, a 38-storey commercial, office and residential skyscraper previously owned by Globe Asiatique Realty Holdings Corp. before it was foreclosed. Any remaining funds will be used for general corporate purposes.
In the same statement, DoubleDragon Chairman Edgar Sia II noted the “evident support” given by financial institutions and the investing public to the company, which, he said, is a recognition of DoubleDragon’s “long-term potential.”
Since its debut on the stock market last April, the company spent P900 million for land acquisition and for the rollout of its first five community malls under its subsidiary CityMall Commercial Centers, Inc. (CMCCI).
CMCCI is 66% owned by DoubleDragon and 34% owned by SM Investments Corp.
The property joint venture, whose main partners founded the Jollibee and Mang Inasal restaurant chains, has a P525-million net profit target for the year. Its second-quarter net profit rose sharply to P63.1 million from P3.7 million a year earlier.
On Friday, DoubleDragon shares lost nine centavos or 1.20% to close at P7.43.