Metro Manila (CNN Philippines, July 8) — Listed firms DoubleDragon and Jollibee Foods Corporation (JFC) have partnered to create the country’s first and largest industrial Real Estate Investment Trust (REIT).
In a disclosure to the local bourse on Thursday, DoubleDragon confirmed signing a ₱3.97-billion binding agreement with the fast food giant yesterday to expand its leasing subsidiary CentralHub Industrial Centers.
Under the deal, JFC will acquire 1.56 billion common shares of CentralHub and infuse its 16.4 hectares of industrial properties currently used as commissaries – bringing the leasing firm’s total industrial land portfolio to 39.8 hectares.
CentralHub’s field is developing industrial warehouse complexes for commissaries, cold storage, and logistics centers that will be leased nationwide. It aims to eventually register and operate as a REIT – eyeing an initial public offering next year.
“Not only will this partnership between DoubleDragon and Jollibee bring forth many benefits to both sides, but it will also accelerate CentralHub’s goal to become the first and the largest Industrial Real Estate Investment Trust (REIT) in the Philippine Stock Exchange,” DoubleDragon chairman Edgar “Injap” Sia II said.
Meanwhile, JFC chairman and founder Tony Tan Caktiong said the eventual IPO will help fund their real estate investments for new stores and commissaries, which they will again convert into more REIT invesments and shares.
“The CentralHub will have its own property and fund managers who are separate from JFC,” Caktiong said. “This will allow JFC to focus on growing its core business in food service, restaurant operations, and food processing,” he added.
Sia also said they are looking forward to working with the food and restaurant company in developing CentralHub into the “largest landlord” of industrial warehouses in the Philippines.
DoubleDragon shares closed at ₱12.10 apiece on Thursday – unchanged from yesterday’s close.
Shares of JFC, however, tumbled by 1.04% to ₱210.20 apiece.
