DoubleDragon Properties Inc. said Monday a unit formed a joint venture with a Mindanao-based company to construct two community malls under the brand CityMall in Zamboanga City.
DoubleDragon said in a disclosure to the stock exchange retail arm CityMall Commercial Centers Inc. signed an investment and shareholders’ agreement with Galleria Zamboanga Inc. for the construction of the two community malls.
It said under the agreement, CMCCI and GZI would form a joint venture company called Prime DDG Commercial Centers Inc. as the corporate vehicle that would own the two CityMalls in Zamboanga City.
GZI will contribute one hectare of prime property in Tetuan, Zamboanga and 1.4 hectares in Guiwan, Zamboanga, as equity in Prime DDG.
Prime DDG will be 70-percent owned by CMCCI and the 30-percent owned by GZI. CMCCI will be in charge of the management. Construction of the two malls is expected to start by end of second quarter of 2014, DoubleDragon said.
CMCCI is a holding company for the CityMall community mall projects of DoubleDragon. CityMall is envisioned to become one of the largest branded independent community mall chains in the country.
A CityMall will have an average gross floor area of 5,000 to 10,000 square meters and will be located in prime locations mostly in Visayas and Mindanao.
SM Investments Corp. of the Sy family acquired a 34-percent interest in CMCCI in February, with DoubleDragon owning the remaining 66 percent.
DoubleDragon completed the acquisition last year of a 1.2-hectare commercial property in Roxas City, which would be the site of the company’s first CityMall.
The CityMall in Roxas City, along with the two community malls in Zamboanga City will open by December this year.