MANILA, Philippines - DoubleDragon Properties Corp., owned by Jollibee founder Tony Tan Caktiong and Mang Inasal founder Edgar "Injap" Sia II, has acquired a majority stake in a Western Visayas-based property firm.
In a disclosure to the stock exchange, DoubleDragon said it signed a deal with Zion Land Development Ph Inc to acquire a 70 percent stake in the company for P140 million.
Zion Land is a property company owned by the Du family. While Zion Land was incorporated in September 2011 and its first operating year only in 2013, the Du family has been into affordable horizontal housing since 2005.
"Zion Land is planned to be DoubleDragon's horizontal residential project arm in the Visayas area and will complement DD's project portfolio of providing affordable horizontal primary residential development in the provinces and is seen to address the country's huge housing backlog," DoubleDragon said.
Zion Land is expected to start contributing to revenues and profits of DoubleDragon this year. This year, Zion Land is seen to post P389 million revenues, which translates to P85.6 million in netincome after tax.
"In addition to DD's other income sources, the company is seen to surpass its P340 million net income target for the year," DoubleDragon said.
DoubleDragon said it is eyeing similar majority stake acquisitions of mid-sized horizontal residential property companies in Mindanao, northern Luzon and southern Luzon.
"DoubeDragon has consistently adopted a strategy of targeted developments in prime, strategic locations. Given the relative success of the company with its completed projects using this formula, it plans to effect the same strategic support into Zion Land... DD will continue to acquire interests in properties in prime and strategic locations and with strong growth and market potential," it said.