MANILA, Philippines - Newly-listed DoubleDragon Properties Corp. of Mang Inasal founder Edgar “Injap” Sia II and Jollibee Foods owner Tony Tan Caktiong is targeting to hit the P5-billion income mark in six years.
The strong profit growth will be driven by the CityMall community malls, its top executive said yesterday.
“With all the DoubleDragon projects in the pipeline executed, DoubleDragon aims to reach P1 billion net income level by 2016,” Sia said in an e-mail.
He added that the company’s earnings will reach P4.8 billion by 2020.
In 2013, DoubleDragon’s net income jumped 32 percent to P126.63 million from P92.48 million, almost entirely coming from residential sales.
DoubleDragon aims to reach one million square meters (sqm) of total leasable space portfolio by 2020, of which 700,000 sqm is expected to come from the planned 100 CityMall community malls, mostly in the Visayas and Mindanao.
In a disclosure yesterday, the property company said it has firmed up the initial foray of its community malls unit into Mindanao.
DoubleDragon said its subsidiary CityMall Commercial Centes Inc. (CMCCI) signed an investment and shareholders agreement with Galleria Zamboanga Inc. (GZI).
The deal facilitates “the construction of two CityMall community malls in different prime locations in Zamboanga City” in the second quarter, DoubleDragon said.
Under the agreement, CMCCI and GZI will form joint venture company Prime DDG Commercial Centers Inc. to serve as the corporate vehicle for the ownership of the CityMalls in Zamboanga City.
GZI will contribute a one-hectare prime property in Tetuan, Zamboanga and 1.4 hectare prime commercial property in Guiwan, Zamboanga as equity in Prime DDG.
The Guiwan property is right beside the public market while the Tetuan lot is right in the middle of a highly-populated residential area.
Prime DDG will be 70 percent owned by CMCCI and the remaining 30 percent will be owned by GZI. Management of Prime DDG remains with CMCCI, DoubleDragon said.
GZI is owned and controlled by the Zamboanga-based Lim family. It is the firm behind Southway Square Mall and Shop-O-Rama Department Store, which is in operation in the downtown area of Zamboanga City for over three decades.
DoubleDragon will complete five CityMalls this year. It will also acquire sites for the next 25 community malls that require an investment of around P275 million each.
In February, mall and banking conglomerate SM Investments Corp. acquired 34 percent of CMCCI while DoubleDragon retained a 66-percent stake and management control DoubleDragon was initially created as Injap Land Corp. as the real estate arm of Injap Investments Inc. in 2009.
In July 2012, it was renamed DoubleDragon as it became a 50-50 joint venture between Injap Investments Honeystar Holdings Corp. of Tan Caktiong.