Shareholders of DoubleDragon Properties Inc. on Tuesday approved the increase in the company’s authorized capital stock to P20.5 billion from P500 million, a move that will enable it to raise funds to finance expansion projects.
DoubleDragon chief investment officer Marianna Yulo said in an e-mail the company’s shareholders approved the increase in authorized capital, consisting of 5 billion common shares with a par value of P0.10 apiece and the creation of 200 million non-voting preferred shares with a par value of P100 apiece during a special stockholders meeting.
DoubleDragon said with the creation of 200 million non-voting preferred shares, it planned to issue 100 million worth of preferred shares at an issue price of P100 apiece, or for a total of P10 billion.
Yulo said while details of the offering were being finalized, the company planned to issue the preferred shares in March or April this year.
“On the details of the deal and underwriters, we will have to make the necessary disclosure once everything has been finalized as we are still in the process of preparing the documentation for filing with the SEC [Securities and Exchange Commission],” Yulo said.
DoubleDragon, a 50:50 joint venture between Injap Investments Inc. of businessman Edgar Sia II and Jollibee Foods Corp.’s chairman Tony Tan Caktiong, aims to be one of the five largest property companies in the Philippines by 2020, by developing 1 million square meters of leasable space.
The company said to achieve the target, it planned to build 25 community malls under the CityMall brand every year or a total of 100 by 2020.
DoubleDragon earmarked P24 billion to develop 700,000 square meters of leasable space and 100-branch CityMall portfolio.
It is also developing the 4.8-hectare DD Meridian Park at the corner of Macapagal Ave. and Edsa Extension in Pasay City. Once the entire development is fully completed, DD Meridian Park will have over 280,000 square meters of prime leasable space.
DoubleDragon reported a net income of P713.6 million in the first nine months of 2015, up 113 percent from P338.1 million a year ago.
The company said the opening of first five CityMalls and the recent launching of Dragon8 Mall-Divisoria started generating rental revenues.
DoubleDragon said it was targeting a net income of P1 billion in 2016 and P4.8 billion by 2020.