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SEC okays DoubleDragon’s REIT offering

The Securities and Exchange Commission (SEC) has considered favorably the nearly P14.71 billion initial public offering (IPO) of a real estate investment trust (REIT) largely sponsored by DoubleDragon Properties Corp.

In its February 16 meeting, the Commission En Banc resolved to render effective the registration statement of DDMP REIT, Inc. for 17,827,465,406 common shares for listing on the Main Board of the Philippine Stock Exchange (PSE), subject to the company’s compliance with the remaining requirements.

Of the total issued and outstanding shares, DDMP will offer to the public up to 5,942,488,469 common shares currently owned by DoubleDragon, Benedict V. Yujuico and Teresita M. Yujuico. The selling shareholders set aside 594,248,847 more shares for overallotment.

Assuming the full exercise of the overallotment option, new investors will corner 36.67% of the issued and outstanding common shares of DDMP. DoubleDragon will retain a 44.33% interest, while the Yujuicos will continue to own 9.65% and 9.35%, respectively.

DDMP pegged the maximum offer price at P2.25 apiece, or a total of P14,707,658,961. The selling shareholders will receive the entire proceeds, which shall be reinvested in the Philippines, pursuant to the Revised Implementing Rules and Regulations of Republic Act No. 9856, otherwise known as the Real Estate Investment Trust (REIT) Act of 2009.

DDMP intends to conduct the IPO from March 5 to 11 and debut on the PSE on March 19, based on the latest timetable submitted to the SEC.

Credit Suisse (Singapore) Limited, DBS Bank Ltd., Nomura Singapore Limited, and PNB Capital and Investment Corporation will act as joint global coordinators for the REIT offering.

The global coordinators will concurrently serve as joint bookrunners, along with CIMB Investment Bank Bhd, Investment & Capital Corporation of the Philippines (ICCP), Macquarie Capital Securities (Singapore) Pte. Limited, Maybank Kim Eng Securities Pte. Ltd., and RCBC Capital Corporation.

DDMP further mandated Credit Suisse, DBS, Nomura, CIMB, Macquarie, and Maybank as international bookrunners for the offer, and PNB Capital, ICCP, and RCBC Capital as domestic underwriters.

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

As mandated by law, DDMP shall distribute at least 90% of its annual distributable income as dividends.

The distributable income refers to the company’s net income as adjusted for unrealized gains and losses/expenses and impairment losses, and other items in accordance with internationally accepted accounting standards. It excludes proceeds from the sale of the REIT’s assets that are reinvested in the REIT within one year from the date of the sale.

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