DDMP REIT Inc., the real estate trust company of DoubleDragon Properties Corp., said Monday it plans to hold its P14.7-billion initial public offering in February next year.
The company said in a filing with the Securities and Exchange Commission it would offer up to 5.9 billion common shares with an over-allotment option for another 594.2 million common shares at a maximum price of P2.25 apiece.
It said at least 70 percent of the shares would be sold to foreign investors while the remaining 30 percent would go to domestic investors.
The offering period was is from Feb. 10 to 17, while listing date is tentatively scheduled on Feb. 26. After the listing, DDMP REIT is expected to have a public ownership of 36.67 percent.
The company tapped Credit Suisse Ltd., DBS Bank Ltd., Nomura Singapore Ltd., PNB Capital and Investment Corp., RBCC Capital Corp., Investment Capital Corporation of the Philippines and Macquire and Maybank ATK KimEng as joint book runners for the offering.
The company’s portfolio consists of three commercial properties with six office towers and retail components located within DD Meridian Park in Bay Area, Pasay City. They have gross leasable area of 172,252 square meters.
The total occupancy rate of these properties was 99.5 percent as of end-June. Majority of its tenants, which are online gaming operators and business process outsourcing companies, have lease commitments for a term of five years or more with options for the tenant to renew.
The company also owns the land where DoubleDragon Tower and Ascott-Meridian Park are being constructed.
It said the two buildings are potential expansion projects that could be added to the group’s portfolio once cash flows from operations of these properties stabilize.
DDMP REIT is the second company to file for REIT offering with the SEC after AREIT Inc. of Ayala Land Inc.
Other groups that expressed plans to conduct REIT offering are Robinsons Land Corp., Megaworld Corp. and Vista Land & Lifescapes 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.
REIT firms are required to distribute 90 percent of income yearly.