DoubleDragon to build 2nd industrial hub in Iloilo

By Leslie Gatpolintan

February 14, 2018, 4:32 pm

MANILA -- Listed property developer DoubleDragon Properties Corp. is beefing up its market position in the industrial leasing segment by acquiring a 3.9-hectare lot in Iloilo which it will develop into an industrial hub. 

DoubleDragon told the local bourse its industrial leasing subsidiary, CentralHub Industrial Centers Inc. (CentralHub), acquired Wednesday the Iloilo property, its second industrial leasing hub following the CentralHub in Tarlac which is now under construction.   

Once fully developed, the CentralHub in Iloilo and Tarlac will have capacities of 22,000 square meters and 32,000 square meters, respectively, of leasable space. 

DoubleDragon said the first two sites can contribute about 54,000 square meters or 5.4 hectares of leasable industrial space.

“We believe the industrial leasing segment presents significant growth opportunities for DoubleDragon as the current market supply is very traditional and fragmented. As a new player in an already mature real estate industry which has been dominated by large established players for decades, we are focused in segments within the real estate space where we still have an opportunity to organically dominate, such as industrial leasing, provincial community mall leasing and hospitality,” said DoubleDragon Chairman Edgar “Injap” Sia II.

“Other than the e-commerce businesses that will soon require facilities such as CentralHub, there are also a lot of synergies within our ecosystem since both our affiliates and the tenants of our CityMalls are the natural users of warehouse facilities as they continue expand their business to capture the growing consumer base of the Philippines.” he said. 

CentralHub is envisioned to become the leading provider of industrial warehouses in the Philippines through the development of its first eight CentralHub sites by 2020 --two in North Luzon, two in South Luzon, two in Visayas and two in Mindanao.

The first eight CentralHub sites are targeted to have a total land area of 100 hectares.

Each industrial hub will contain modern standardized multi-use warehouses suited for commissaries, cold storage, light manufacturing, and logistics distribution centers.

DoubleDragon recently revised its 2020 vision from accumulating 1 million square meters of leasable space to 1.2 million square meters in line with its goal of having 90 percent of its revenues from diversified recurring revenue sources, backed by a string of appreciating hard assets.

The new 2020 vision now includes the additional 100,000 square meters of leasable space from the industrial leasing segment through CentralHub and another 100,000 square meters (5,000 rooms) from its Hospitality arm through its rollout of Hotel 101 and JinJiang Inn properties nationwide.

This is in addition to the 700,000 square meters of Retail Leasing operations through CityMalls, and 300,000 square meters of Office Leasing operations from DD Meridian Park and Jollibee Tower.  

This increase in leasable space is expected to enhance the company’s 2020 net income target from PHP4.8 billion to PHP5.5 billion. (PNA)