A Double Dragon Properties Corp. subsidiary acquired a 5.2-hectare peroperty on Friday, Oct. 26, to house an industrial warehouse complex in Danao City, Cebu, the company said in a disclosure to the Philippine Stock Exchange.
The company said CentralHub Cebu will be CentralHub Industrial Centers Inc.’s third site and second major hub in the Visayas, after CentralHub Iloilo. The Danao complex will have 27,212 square meters of industrial warehouse space.
“CentralHub is envisioned to become the leading provider of industrial warehouses in the Philippines through the development of its first eight CentralHub sites by 2020,” the disclosure stated.
There will be four CentralHub branches in Luzon and two in Mindanao. These locations are projected to have a total capacity of up to 400,000 square meters of warehouse leasable space, each containing standardized, multi-use warehouses suited for commissaries, cold storage, light manufacturing and logistics distribution centers.
With e-commerce gaining ground, DoubleDragon expects CentralHub and its other subsidiary CityMall to benefit.
“CityMall is a platform for modern retail players to continue their growth into new markets where they are not currently present, providing its modern retail tenants a way to prepare, position and manage the expected effects of e-commerce disruption in tier 1 cities.”
It added that CentralHub will cater to the rising demand for industrial warehouse spaces, from logistics, commissary, cold storage, distribution, manufacturing, consumer-related and e-commerce companies.
“At the current pace of DoubleDragon’s developments that come on stream and operational, at almost one project completion per week, this naturally translates to a substantial buildup of quality recurring revenue cash flow for the company,” said Double Dragon chairman Edgar “Injap” Sia II.
The company considers industrial warehouse leasing as among its four pillars of growth, the other three being provincial retail leasing, office leasing and hotels. It aims to have a leasable portfolio of 1.2 million square meters by 2020 from 100 CityMalls branches, Double Dragon projects and CentralHub.
“CentralHub is expected to be a major contributor to our growth, especially beyond 2020. In addition to rental income, the company is also able to capitalize on the long-term value appreciation of its prime hard assets,” said Double Dragon chief investment officer Hannah Yulo. (MEA)