DoubleDragon says first tranche of REITs assets identified

ABS-CBN News

Posted at Jul 10 2020 11:43 AM

The Double Dragon Plaza, under the Double Dragon Properties in Pasay City on May 22, 2018. Mark Demayo, ABS-CBN News/File

MANILA - DoubleDragon Properties Corp said Friday it has identified the first tranche of leasable assets for its real estate investment trust offering.

The DD Meridian Park REIT is composed of 7 buildings with a total area of 248,349 square meters with an estimated value of P50,889,814,608, the property developer said in a disclosure to the stock exchange.

DoubleDragon said it expected to generate some P16,966,604,869 of proceeds for the planned REIT listing or 33.33 percent of the assets. All of the proceeds will be reinvested in the Philippines, it said.

REITs are supposed to give the investing public more options and to take a more active part in the real estate growth story.

“REITs are a good way to recycle capital for expansion of the Company’s portfolio and raise equity to further boost its balance sheet. Since the offer will only cover 33.33% of the REIT basket,
DoubleDragon will retain majority of the REIT assets so it will remain consolidated in the Company’s balance sheet,” said DoubleDragon Chief Investment Officer Hannah Yulo-Luccini.

Two more buildings are planned to be infused in the offering after 2 to 3 years, it said.

The company aims to file its REITs listing application with the Securities and Exchange Commission and the Philippine Stock Exchange in August and to list assets in October, DoubleDragon said.

The REIT listing will enable the total equity of DoubleDragon to surpass the P50 billion mark, it added.