CentralHub Industrial Centers, Inc. (CICI), the industrial leasing arm of real-estate company DoubleDragon Properties, Inc. (DD), has acquired a 3.9-hectare property in Iloilo that will be developed into a leasable space warehouse with a capacity of 22,000 square meters.
In a statement, DD said the property, located along Iloilo R3 Road and approximately five kilometres from Iloilo International Airport and 10 km to the Iloilo City proper, is CICI’s second CentralHub complex in the Philippines following CentralHub-Tarlac, now under construction.
CICI envisions being the leading provider of industrial warehouses in the Philippines through the development of its first eight CentralHub sites by 2020, of which two will be in North Luzon, two in South Luzon, two in Visayas, and two in Mindanao.
The first eight CentralHub sites are targeted to have a total land area of 100 hectares.
CentralHub-Tarlac sits on a 6.2-hectare lot with a capacity of 32,000 square meters of leasable space once fully developed, while CentralHub-Iloilo will have a capacity of 22,000 square meters of leasable space once fully developed.
Each CentralHub site will contain modern standardized multi-use warehouses suited for commissaries, cold storage, light manufacturing, and logistics distribution centers.
CICI intends to have an initial 100,000 square meters of leasable industrial space by 2020. Currently, the first two sites, CentralHub-Tarlac and CentralHub-Iloilo once fully developed can contribute approximately 54,000 square meters or 5.4 hectares of leasable industrial space.
“We believe the industrial leasing segment presents significant growth opportunities for DoubleDragon as the current market supply is very traditional and fragmented. As a new player in an already mature real estate industry which has been dominated by large established players for decades, we are focused in segments within the real estate space where we still have an opportunity to organically dominate, such as industrial leasing, provincial community mall leasing and hospitality. Other than the e-commerce businesses that will soon require facilities such as CentralHub, there are also a lot of synergies within our ecosystem since both our affiliates and the tenants of our CityMalls are the natural users of warehouse facilities as they continue expand their business to capture the growing consumer base of the Philippines,” DD chairman Edgar Sia II said.
DD recently revised its 2020 vision upwards from accumulating one million square meters of leasable space to 1.2 million square meters in line with its goal of having 90% of its revenues from diversified recurring revenue sources backed by a string of appreciating hard assets.
The new 2020 vision now includes the additional 100,000 square meters of leasable space from the industrial leasing segment through CentralHub and another 100,000 square meters (5,000 rooms) from its hospitality arm through its rollout of Hotel101 and JinJiang Inn properties nationwide. This is in addition to the 700,000 square meters of Retail Leasing operations through CityMalls, and 300,000 square meters of Office Leasing operations from DD Meridian Park and Jollibee Tower. This increase in leasable space is expected to enhance the company’s 2020 net income target from P4.8 billion to P5.5 billion.
