DoubleDragon Properties Corporation is a Philippine company specializing in real estate development.
Iloilo City-born businessman Edgar Sia II founded the firm in 2009 as a subsidiary of Injap Investments, Incorporated.
The pioneer of the Makati City-based real estate development company is the founder of popular Filipino fast-food restaurant Mang Inasal.
Philippine daily newspaper The Manila Times reported that DoubleDragon Properties Corporation is eager to join the real estate investment trust (REIT) market.
Sia’s joint venture with Jollibee Foods Corporation chairman and founder Tony Tan Caktiong has a similar plan with other leading Filipino firms.
Among these real estate companies also interested to tap the REIT market are Robinsons Land Corporation and Megaworld Corporation.
This development comes after AyalaLand REIT, Incorporated (AREIT) became the first company to engage in the REIT venture.
Ayala Land, Incorporated (ALI) lists AREIT as one of its units.
Last week, Colliers International Philippines reported that the action of ALI’s company would most likely lure provincial and national real estate companies to follow suit.
AREIT functions as a stimulant. It encourages other Philippine real estate developers to use REITs as another source of new capital, the property consultancy company remarked.
AREIT has filed an application for REIT with the Securities and Exchange Commission (SEC). From the issuance, the Ayala company sought to raise as much as P15.10 billion.
Furthermore, AREIT intends to offer common shares amounting to 502.57 million. If approved, these shares would cost P30.05 per piece.
AREIT will reportedly utilize the net proceeds it will gain from the REIT venture for future investments in real estate development.
These initiatives will be in essential locations, including Metro Manila.
Aside from bonds and preferred shares, Colliers sees DoubleDragon Properties Corporation benefiting from REITs.
As the latter are alternative investment vehicles, they permit small and medium investors to take part in the property market.
Since DoubleDragon Properties Corporation has expressed its intent to engage in REITs, the real estate company needs to possess a paid-up capital worth P300 million.
Furthermore, the participating stock firm should have a public float of at least 33 percent.
DoubleDragon Properties Corporation would have to pay out yearly dividends as well. These funds would necessarily have to be 90 percent of the distributable financial gains.
Within one year, DoubleDragon Properties Corporation needs to reinvest the proceeds from its transaction in the Philippine market.
These investments could be in the form of infrastructure or real estate. In January this year, the SEC signed the final guidelines for REITs.
The agency performed this action together with the Bureau of Internal Revenue, the Philippine Stock Exchange (PSE), and the Department of Finance.
They inked the document following spending over ten years talking about REITs.
On Monday, February 24, 2020, DoubleDragon Properties Corporation (PSE: DD) closed at P17.30 per share.
This last trade price of the company’s stock is down by 1.10 or 5.98 percent.
The total value reached P8,533,070.00. The 52-week high of DoubleDragon Properties Corporation is at P27.30.
Meanwhile, the PSE recorded its 52-week low at P15.72.
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