Philippines’ DoubleDragon plans $1.3b multi-year REIT offering

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The Philippines’ DoubleDragon Properties Corp plans a sale of shares worth up to 66 billion pesos ($1.3 billion) in a real estate investment trust (REIT), starting this year, to generate funds for expansion, its chairman said on Wednesday.

DoubleDragon is one of the largest landlords of Chinese offshore gaming operators, which are the biggest office tenants in Manila, the capital, occupying 1.26 million sq. m. of space by the end of 2019, data from Colliers International shows.

Last month, the Philippines made rules on REITs more attractive by lowering public float requirements and offering tax perks, a move expected to entice property firms to tap the markets for new capital.

DoubleDragon plans annual share sales of 11 billion pesos ($217.56 million) in its REIT from 2020 to 2025, Chairman Edgar Sia told Reuters in an e-mail.

Each REIT offer will include 200,000 sqm of DoubleDragon‘s leasing assets, he added.

“We intend to choose the most mature assets for the first tranche of REIT listing in the first year, and then the following year choose another batch of leasable space that has ripened and matured that year,” Sia said.

Property firms shied away from the REIT law of 2009 because of a high public ownership requirement and transaction taxes.

Last week, Ayala Land Inc filed an application for a share sale of up to 14.4 billion pesos ($284.9 million) in a REIT, the country’s first.

REITs, which manage real estate assets such as hotels, office buildings and malls that regularly generate profits, are attractive to investors seeking regular dividends.

DoubleDragon targets a portfolio of 1.2 million sq.m. of office leasing, provincial retail and industrial warehouse by 2020.

New funds from the REIT offering will be used for provincial projects, Sia said. Most of DoubleDragon‘s commercial projects are in the provinces, where retail is not as saturated as the capital.

Reuters

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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.