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DoubleDragon REIT starts offer period for P14.7B IPO


DDMP REIT Inc., the real estate investment trust of DoubleDragon Properties Corp., on Wednesday began the offer period for its initial public offering (IPO), with an aim to raise P14.7 billion.

In a disclosure to the Philippine Stock Exchange, DoubleDragon said its subsidiary, DDMP REIT, received a Permit to Sell from the Securities and Exchange Commission (SEC) for its primary offering of 5,942,488,469 common shares with an over-allotment option of up to 594,248,847 common shares.

DDMP REIT priced its offering at P2.25 per share.

The offer period begins on Wednesday, March 10, and ends on March 16.

The company has mandated PNB Capital, Credit Suisse, DBS, and Nomura to act as joint global coordinators and joint bookrunners together with RCBC Capital, ICCP, Macquarie, Maybank Kim Eng and CIMB for the IPO.

The Republic Act No. 9856 or the Real Estate Investment Trust Act of 2009 allowed companies to list their real property assets on the Philippine Stock Exchange as a new vehicle to raise funds for other investments and expansion initiatives.

As an asset class, REITs are required to declare dividends of at least 90% of its distributable income.

The portfolio of DDMP currently covers six office towers with retail components within the DD Meridian Park in Pasay City, with its leasing spaces catering to a mix of tenants such as business process outsourcing companies, government agencies, and corporate locators.

As mandated by the law, DDMP will distribute at least 90% of its annual distributable income as dividends. This refers to the company's net income as adjusted for unrealized gains and losses or expenses and impairment losses, excluding proceeds from the sale of assets that are reinvested within a year from the date of sale.

Aside from DD Meridian Park, DoubleDragon's core projects include CityMall, Jollibee Tower, The SkySuites Tower, Dragon8 Mall, and W.H Taft Residences. It also has several projects in Iloilo such as the Injap Tower, The Uptown Place, People's Condominium, FirstHomes Subdivision, and HappyHomes - Mandurriao.—AOL, GMA News
 

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