DOUBLEDRAGON Properties Corp. has identified its first tranche of real estate investment trust (Reit) assets comprising the leasable properties of DD Meridian Park.
The intended DD Meridian Park (DDMP) Reit will consist of seven buildings with a total area of 248,349 square meters (sq.m).
The estimated value of the basket of Reit assets stands at P50,889,814,608, and the company expects to generate P16,966,604,869 of proceeds from the planned Reit listing, representing an offer of 33.33 percent of the selected Reit assets, which is the minimum public float based on the revised Reit listing rules.
All of the proceeds from the listing will be reinvested in the Philippines.
The Reit proceeds will be enough to construct about 450,000 sq.m of building floor area which will further significantly increase the leasable portfolio and recurring rental revenues of the company in the near term.
In addition to the seven buildings that will form the first tranche of DDMP Reit, another two more buildings are planned to be infused in the DDMP Reit after about two to three years as these two other buildings are still currently under construction, also located in the DD Meridian Park complex.
The company is preparing to file its Reit listing application with the Securities and Exchange Commission and the Philippine Stock Exchange in August 2020 and aims to list DDMP Reit by this year in October 2020.
DoubleDragon currently has 803,000 sq.m in its portfolio and plans to list via Reit about 200,000 to 250,000 sq.m annually from 2020 to 2025, which will enable the company to unlock the values of its prime leasable assets. (PR)