DoubleDragon REIT IPO attracts strong demand

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    DoubleDragon Properties Corp. is maximizing the initial public offering of its real estate investment trust (REIT), pricing the REIT at the high-end of its price band at P2.25 per share.

    This effectively raises the potential proceeds of the sale to P14.71 billion.

    The REIT sale, done through DoubleDragon unit DDMP REIT Inc., eyes to sell 6.53 billion of its shares to the public, divided into a firm offer of 5.94 billion shares and another 594.25 million shares covering the greenshoe option.

    The shares for sale are owned by DoubleDragon, Benedict V. Yujuico and Teresita M. Yujuico.

    DoubleDragon said it expects to spend the proceeds to invest in four office towers in Manila, three hotel development in Boracay, Mactan, and Baguio and 20 new warehouses around the country.

    The company said the reinvestment will be done “within one year from receipt of the proceeds.”

    The REIT sale cover 36.67 of DDMP post-initial public offering. DoubleDragon will retain a 44.33 percent interest, while the Yujuicos will continue to own 9.65 percent and 9.35 percent, respectively.

    “The price is set at the top end of the range due to strong demand during the bookbuild process. At the price of P2.25 per share, the projected dividend yield as stated in the REIT Plan is 5.07 percent for fiscal year 2021 and 5.45 percent for fiscal year 2022,” the company said.