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MANILA, Philippines — Jollibee Foods and Double Dragon Properties are partnering to form the Philippines’ “first and largest industrial real estate investment trust,” the firms said on Thursday. Jollibee is the latest Philippine company to seek funding for its post-pandemic recovery from the burgeoning REIT market. Following the government’s relaxation of public ownership and tax rules last year, major property developers began lining up for REIT listings on the Philippine Stock Exchange. Jollibee will purchase shares of CentralHub Industrial Centers, a Double Dragon affiliate, as well as transfer part of its properties to the REIT, totaling 3.97 billion pesos ($79.6 million) under the terms of their deal. CentralHub plans to go public next year, though the amount of the offering has yet to be finalized, according to Jollibee. Jollibee claims that the move will free up real estate assets, allowing the company to focus on its core food service and restaurant operations. “We’ll use the proceeds from CentralHub’s eventual IPO to fund real estate investments for our new stores and commissaries, which we’ll then convert back into more investments and shares in the REIT,” Jollibee founder and Chairman Tony Tan Caktiong stated. The fast food behemoth would hand up 16.4 hectares of industrial land to CentralHub, which now houses facilities for baking bread and sauces. The investment will expand the REIT’s property to approximately 40 hectares, including cold storage and logistical facilities. “We’re looking forward to collaborating with Jollibee in building CentralHub into the country’s largest industrial warehouse landlord,” said DoubleDragon Chairman Edgar Sia. “We see CentralHub as a big recurring income generator to DoubleDragon,” says the company. The agreement cements the two chairmen’s relationship, which began in 2010 when Jollibee acquired Mang Inasal, a BBQ chicken company founded by Sia. Double Dragon, which had a blockbuster stock market debut in 2014, is owned by the two, who are among the Philippines’ most respected entrepreneurs. After raising 14.7 billion pesos in March, Double Dragon listed DDMP REIT, which owns office properties. It was the country’s second real estate investment trust. Philippine authorities also approved Filinvest REIT, previously Cyberzone Propertiesinitial ,’s public offering (IPO), which wants to raise up to 14.9 billion pesos. The company intends to offer stock from July 26 to August 3 and list on the Philippine Stock Exchange on August 12. Megaworld and Robinsons Land, two more local real estate titans, have also announced REIT offers for up to 27.3 billion pesos and 26.7 billion pesos, respectively./nRead More

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