DoubleDragon to build warehouse complex in Davao
Subscribe Now March 13, 2019 at 08:34pm
In a statement issued Tuesday, CentralHub Industrial Centers, Inc said it has signed a joint venture agreement with Alsons Development & Investments Corp. for the development of an industrial complex on an 8.2-hectare property in Davao City.
CentralHub will own 70% of the venture, while Alsons will have a 30% stake.
Located along the Daang Maharlika Highway, CentralHub-Davao will offer 40,392 square meters (sq.m.) of leasable industrial warehouse space. The property is eight kilometers away from the Davao International Container Terminal, and 17 kilometers away from the Francisco Bangoy International Airport in Davao City.
DoubleDragon Chief Investment Officer Marriana H. Yulo said there has been rising demand for warehouse space due to the government’s increased spending on infrastructure projects.
“The continuous investment in infrastructure projects are compelling e-commerce and consumer companies to enter new markets which has become the catalyst for the strong demand in industrial space,” Ms. Yulo was quoted as saying in a statement.
CentralHub-Davao marks the company’s first project in Mindanao and its fourth in the country. It is currently building CentralHub-Danao in Cebu, CentralHub-Iloilo, and CentralHub-Tarlac. These projects cover 23.3 hectares with 121,626 sq.m. of leasable industrial warehouse space.
DoubleDragon aims to have at least 100,000 sq.m. in warehouse leasable space completed by 2020. These properties will house modern standardized multi-use warehouses that can be used as commissaries, cold storage, light manufacturing, and logistics distribution centers.
“The company has been seriously focused on building up its portfolio of prime hard assets that can generate high double-digit rental yields and deploy capital only on select prime properties that can appreciate five to 10 folds in the next five to 10 years,” DoubleDragon Chairman Edgar J. Sia II said in a statement.
CentralHub is one of DoubleDragon’s so-called four pillars of growth, with the others being its community malls unit called CityMalls, the office segment, and the hotel group. The four segments are seen to deliver 1.2 million sq.m. of leasable space by next year.
DoubleDragon booked an attributable profit of P966.02 million in the first nine months of 2018, 19% higher year on year, following a 16% uptick in gross revenues to P4.72 billion.
Shares in DoubleDragon fell 2.88% or 60 centavos to close at P20.25 each at the stock exchange on Tuesday.
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