Sia, Tan Caktiong to trash spending plan amid DoubleDragon REIT IPO flop: Warehouses canceled, downsized; more community malls, hotels eyed

Ultra bilyonaryo Tony Tan Caktiong and his partner Injap Sia are making massive changes to the spending plan of DoubleDragon Meridian Park Properties’ real estate investment trust (DDMPR) which is one of the biggest initial public offering (IPO) busts of 2021.

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DDMPR, which has plunged 30 percent from its IPO price of P2.25 in March 2021, has canceled allocations for eight projects and slashed the budget of 10 other projects supposedly due to “COVID-19 pandemic and the different community quarantines and government restrictions on movement of persons and business operations.”
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DDMPR dumped six central hub projects in Zamboanga, Butuan, Naga, Bohol, Palawan and Bulacan, a beachfront project in Mactan Cebu, and its allocation for DD Meridian Tower in Pasay City (management realized that its subsidiary had enough cash to finish the towers on its own).

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The company also cut back by a total to P2.26 billion the budget for its Robinsons Double Dragon Square project in Bridgetowne, Quezon City and the allocation for nine central hub projects in Surigao, Negros, Cagayan de Oro, Tuguegarao, General Santos, Leyte, South Luzon, Cebu and Zamboanga. DDMPR said the cost reduction was due to “adjustment in the priority developments, development size, and timetable.”

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The P5.456 billion it saved from the cancellation and downsizing of projects would now be spent for 23 new projects – the Ascott in
Meridian Park; Greencoast three Happy Homes residential projects; eight Hotel 101 projects; and 10 community malls.
DDMPR, which called the spending overhaul “reprioritization of projects to optimize expenditures”, still has P6.0096 billion left as
of 31 December 2021 from the P8.982 billion net proceeds of its IPO (DDMPR burned P935 million of its proceeds to stabilize its stock to no avail).