Jollibee Foods Corp. (JFC) on Friday said it finalized its investment into DoubleDragon Properties Corp.’s industrial leasing unit.
In a disclosure to the stock exchange, JFC said the company and its wholly-owned subsidiary Zenith Foods Corp. executed the P3.97 billion deal to cement their investment in CentralHub Industrial Centers, Inc.
CentralHub is a DoubleDragon subsidiary that develops industrial warehouse complexes.
“The cash and property infusion investment of Jollibee to acquire common shares in CentralHub will grow both the recurring rental revenue portfolio of DoubleDragon’s CentralHub… as well as boost the development of additional warehouse assets being constructed,” DoubleDragon said in a disclosure on Friday.
JFC previously said it was planning to buy 1,564,410,000 common shares of CentralHub for around P1.9 billion, and to infuse P2-billion worth of industrial properties spanning 16.4 hectares used as commissaries, in exchange for more CentralHub common shares.
The deal is part of JFC and DoubleDragon’s plan to create an industrial real estate investment trust (REIT) through Central Hub.
“CentralHub intends to eventually register and operate as a Real Estate Investment Trust, with a planned Initial Public Offering in 2022. The timing for the registration of the REIT initial public offering and the filing of the application for the REIT listing of CentralHub will be subject to the agreement of JFC and DD,” JFC said in a disclosure on Friday.
CentralHub now has 39.8 hectares of industrial land in its portfolio, which includes multi-use industrial warehouse complexes used for commissaries, cold storage facilities, and logistics distribution centers.
DoubleDragon Chairman Edgar “Injap” J. Sia II previously said he is expecting CentralHub to be a major income contributor to the listed company.
This will be DoubleDragon’s second REIT offer, following the listing of DDMP REIT, Inc. last March.
JFC shares at the local bourse declined by 2.27% or P4.50 to close at P193.50 each on Friday, while DoubleDragon stocks went down by 1.19% or 12 centavos to finish at P10.22 apiece. — K.C.G.Valmonte