Jollibee investing $77m in IPO-bound industrial REIT CentralHub

Manila, Philippines. Photo: David Milmont/unsplash

Philippine-listed fast-food giant Jollibee Foods Corporation (JFC) has approved a 3.9 billion pesos ($77 million) investment to create the country’s first and largest industrial real estate investment trust (REIT) in partnership with realty major DoubleDragon.

In a disclosure to the Philippine Stock Exchange Friday, Jollibee said that it, together with its wholly-owned subsidiary Zenith Foods Corporation, has executed the definitive agreement implementing the company’s investment into CentralHub Industrial Centres.

CentralHub is DoubleDragon’s industrial leasing unit. It is in the business of developing industrial warehouse complexes that will contain standardized, multi-use, and industrial quality warehouses suited for commissaries, cold storage, and logistics centers to be leased to locators operating nationwide.

The deal, which was first announced in July, will see Jollibee investing land properties worth around 2 billion pesos and 1.9 billion pesos in cash in Central Hub. Under the agreement, Jollibee will subscribe to 1.6 million common shares of CentralHub in cash. It will also infuse 16.4 hectares of its industrial properties in CentralHub’s portfolio in exchange for additional common shares.

The CentralHub Industrial Centers intends to eventually register and operate as a REIT, with a planned initial public offering (IPO) in 2022.

The timing for the registration of the REIT’s IPO and the filing of the application for the REIT listing of CentralHub will be subject to the agreement of Jollibee and DoubleDragon.

JFC chairman and founder Tony Tan Caktiong earlier said the eventual IPO will help fund real estate investments for new stores and commissaries, which will again convert into more REIT investments and shares.

“JFC’s plan is to reduce assets tied to real estate properties by converting some of them into securities in REIT and by selling others directly to third parties,” Caktiong earlier said.

In a separate disclosure, DoubleDragon confirmed that it has executives the definitive agreements implementing the investment of JFC into CentralHub.

“The cash and property infusion investment of Jollibee to acquire common shares in CentralHub will grow both the recurring rental revenue portfolio of DoubleDragon’s CentralHub with the consolidation of the existing operating commissaries and warehouse assets of Jollibee,” DoubleDragon said.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.