EUR 91.22 For Business Accounts Only

DDPM REIT Pre-IPO

DDMP REIT (DDMPR), a subsidiary of DoubleDragon Properties Corp (DDP), aims to raise up to US$300 in its Philippines listing.

DDMPR will be the second REIT listing in the Philippines. DDMPR’s investment strategy is to invest in income-generating real estate located in either Metro Manila or key provinces in the Philippines. It aims to acquire primarily Grade A commercial properties, but may acquire other related real estate as well.

It will have an initial portfolio of three commercial buildings, with six office towers, located in DD Meridian Park. It also owns the land for two other under construction assets, which have been leased to DDP. Together the assets will have a gross leasable area (GLA) of 172,252sqm. As of Sep 2020, the portfolio had an occupancy of 99.5% and weighted average lease expiry for the office leases of 4.2years.

Its assets are relatively new, with all having been completed over 2017-19. The assets have long term leases and step-up rental escalation, which should provide rental stability. However, the assets aren’t located in prime CBD and the particular area appears to have a fair amount of incoming office supply over the next few years.

We looked at the background of the REIT in our earlier note, DDMP REIT Pre-IPO - Brand new assets but not with the best of outlooks. In this note, we’ll undertake a peer comparison with recently listed AREIT.