DoubleDragon Properties Corp (“DoubleDragon”) on August 19, 2021 reported that it has executed the definitive agreements implementing the investment of the Jollibee Group to DoubleDragon’s industrial leasing subsidiary, CentralHub Industrial Centers, Inc. (“CentralHub”)
The cash and property infusion investment of Jollibee Foods Corporation (“Jollibee”) to acquire common shares in CentralHub will grow both the recurring rental revenue portfolio of DoubleDragon’s CentralHub with the consolidation of the existing operating commissaries and warehouse assets of Jollibee as well as boost the development of additional warehouse assets being constructed.
Last July 7, DoubleDragon and CentralHub signed a ₱3.97-billion Binding Agreement with Jollibee Foods Corporation (“Jollibee”) in CentralHub.
The Jollibee will acquire common shares of CentralHub and infuse its 16.4 hectares of industrial properties currently utilized as its commissaries. The portfolio of industrial properties that will be infused into CentralHub includes the largest operating commissary of Jollibee.
The additional commissary assets to be infused will increase the total industrial land portfolio of CentralHub to 39.8 hectares.
“We are excited to work together with Jollibee in developing CentralHub into the largest landlord of industrial warehouses in the country. We see CentralHub to become a major recurring income contributor to DoubleDragon,” said DoubleDragon Chairman Edgar “Injap” Sia II.
“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,” added Mr. Sia.
“DoubleDragon will further grow its revenue and profit sources and continue to strengthen its balance sheet year on year with strategic steps such as this partnership with Jollibee,” said DoubleDragon Chief Investment Officer Ms. Hannah Yulo-Luccini
CentralHub is a portfolio of industrial warehouse complexes suited for use as a warehouse, commissary, cold storage facility, and logistics distribution center.