DoubleDragon targets over $137M in sales from Japan condotel

November 21, 2022 12:00:00

Listed property developer DoubleDragon Corp. expects to generate over $137 million in sales from its first overseas project, the Hotel 101 in Niseko, Hokkaido in Japan, marking the beginning of an aggressive international strategy.

The property venture of tycoons Edgar "Injap" Sia II and Tony Tan Caktiong said it has tapped banks to issue $30 million in debt papers to finance the condotel project, which would allow DoubleDragon to generate US dollar revenues by the first quarter of 2023.

"DoubleDragon diversifies its funding sources as it prepares itself to grow its business operations inside and outside the Philippines over the long-term," the builder said in a stock exchange filing.

"DoubleDragon recognizes the value that diverse funding sources and a broad investor base provide for its growth and expansion," it added.

The 7.25-percent senior guaranteed notes will mature in 2025. These will be issued by DDPC Worldwide, a wholly owned subsidiary of DoubleDragon.

The developer said it executed a subscription agreement with UBS AG Singapore Branch as sole global coordinator, joint lead manager and joint bookrunner with RCBC Capital Corp. acting as joint lead manager.

The notes will be consolidated with the company's existing $130-million 7.25-percent notes due in 2025. The debt papers were previously issued on July 27, 2020 and March 16, 2022.

Hotel 101 Niseko will have 518 rooms, which would be sold to investors and end-users through preselling activities.

"DoubleDragon believes it is about time that a Filipino hotel brand be exported overseas," the company noted.

Hotel 101 will have new domestic outlets in Bonifacio Global City, Libis, Cebu, Boracay, Bohol, Palawan and Davao.

Sia previously told the Inquirer he planned to take the hotel business public via an initial public offering in Singapore by 2025.

Last Nov. 4, DoubleDragon received the strongest credit rating from Philippine Rating Services Corp.

The developer has since completed a portfolio of over 1.2 million square meters of leasable gross floor area in various parts of Luzon, Visayas and Mindanao.

DoubleDragon ended the nine months through September period with a profit jump of 120.6 percent to P2.22 billion while revenues reached P5.66 billion, up 23 percent. —Miguel R. Camus INQ