The Securities and Exchange Commission said it approved on Tuesday the P14.71-billion initial public offering of DDMP REIT, a real estate investment trust sponsored by DoubleDragon Properties Corp. and the Yujuico family.
Documents showed the SEC in a meeting Tuesday approved DDMP REIT’s public offering of 5.942 billion common shares with an over-allotment option for another 594.2 million common shares for P2.25 apiece.
The offering period is set from March 5 to 11 while the target listing date under the main board of the Philippine Stock Exchange is on March 19.
Net proceeds from the offering will be reinvested in the Philippines, as provided under the Revised Implementing Rules and Regulations of Republic Act No. 9856 or the Real Estate Investment Trust Act of 2009.
DoubleDragon plans to invest the net proceeds in four office towers and three hotel projects in Boracay, Cebu and Baguio.
It will also invest in the construction of 20 warehouse complexes to add to its portfolio of five industrial warehouses.
Its current portfolio includes six office towers with retail components within DD Meridian Park in Pasay City. The company’s leasing spaces cater to a mix of tenants such as business process outsourcing companies, government agencies and corporate locators.
DDMPT REIT will have a public ownership of 36.67 percent after the IPO, while DoubleDragon and Yujuicos will continue to own 44.33 percent and 19 percent, respectively.
Credit Suisse (Singapore) Limited, DBS Bank Ltd., Nomura Singapore Limited and PNB Capital and Investment Corp. will act as joint global coordinators for the REIT offering.
DDMP REIT is the second company to conduct an REIT offering with the SEC after AREIT Inc. of Ayala Land Inc.
REIT is a new investment product that gives investors the option to invest directly in the finished products that are already earning money―such as residential and office units, hotels or shopping malls or even infrastructure ventures like toll roads and power plants―and not just the property developer.
An REIT company is required to declare at least 90 percent of its annual distributable income as dividends.