CITYMALL Commercial Centers Inc., a subsidiary of DoubleDragon Properties Corp. signed on Thursday, May 16, an agreement with ALT-Global-Solutions Inc. for the lease of up to 50 rooftops of CityMalls located in various provinces of the Philippines.
ALT Global is one of the 19 common telecommunications tower companies that have signed a memorandum of understanding with the Department of Information and Communications Technology (DICT).
The rollout of common telco towers is part of the DICT’s thrust to improve cellular services in the country by allowing the three telecommunications companies in the Philippines to share a common telco tower facility.
DoubleDragon continues to find ways to optimize its revenues such as tapping new rental revenue streams from leasing of roof space for solar, advertising spaces in its string of strategic properties around the country, and from rooftop space leasing for common telco towers.
The company has started leasing out its roof spaces to solar companies.
Both CityMall community malls and CentralHub warehouses are expected to lease out a total of 100 MW of solar space by the end of 2020, which is expected to translate to P100 million in annual rental income from the solar roof lease alone, excluding the rental income from advertising and common telco towers.
The company has secured leases amounting to P79.39 billion covering its existing properties.
“DoubleDragon’s portfolio of completed leasable space is like a large fuel tank and its secured leases is the fuel inside the tank, which will ensure the continuous flow of rental revenues into the company. As DoubleDragon completes more leasable spaces, the tank becomes bigger, and as the company secures more lease contracts, the volume of fuel inside the tank increases,” said DoubleDragon chairman Edgar “Injap” Sia II.
“There are only a handful of companies in the Philippines that have accumulated a substantial portfolio of completed revenue-generating leasable properties and DoubleDragon is one of them. The company is now solidifying the rental yields of its portfolio as it prepares to be one of the primary beneficiaries of the establishment of a real estate investment trust (Reit) market in the Philippines,” said DoubleDragon chief investment officer Hannah Yulo.
“We look forward to the opening of the Reit market in the Philippines as it will enable DoubleDragon to unlock the value of its string of prime properties as well as generate new capital that will further boost the company’s balance sheet and enable it to grow its portfolio of leasable space,” she added. (PR)