DDMP REIT, the real estate investment trust company owned by DoubleDragon Properties Corp., priced its initial public offering at a maximum of P2.25 per share.
DDMP REIT is expected raise up to P14.7 billion in proceeds from the share sale scheduled this month based on the IPO price.
The offering period is March 10 to 16, while listing of the shares at the Philippine Stock Exchange is set on March 23.
“The DDMP basket is seen to be a compelling REIT offering since it will include the land, a premier corner lot located along the main thoroughfares of Macapagal Ave., EDSA Extension and Roxas Boulevard, where the first six completed buildings sit on,” DoubleDragon chairman Edgar Sia II earlier said.
“This feature is expected to be a game changer since the value of the prime double corner 4.75 hectare block of land with titled land ownership to be held in perpetuity should keep on appreciating decade after decade, a very important inclusion for both domestic and foreign investors,” he said.
Net proceeds from the offering will be reinvested in the Philippines, as required by relevant regulations.
The company said majority of the proceeds would be infused as equity into CentralHub Industrial Centers Inc. to increase its leasable industrial warehouse space and footprint nationwide.
The warehouse complexes are designed for use as warehouses, cold storage facilities, commissaries or as logistics and distribution centers.
DDMP tapped Credit Suisse, DBS, Nomura and PNB Capital as joint global coordinators and joint bookrunners, together with RCBC Capital, ICCP, Macquarie, Maybank Kim Eng and CIMB for the REIT IPO.
DDMP REIT will be the second REIT company to list at the local bourse, after Ayala Land-led AREIT Inc. which conducted an IPO last year.
Other companies that also expressed interest to conduct REIT offering are Filinvest Land Inc., Robinsons Land Corp. and Megaworld Corp.
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.