Bangkok--31 Oct--MasterMind Communications
MFC has overcome the flood crisis by achieving the IPO subscription volume of THB 2.12bn for the MFC Amazing A-la Andaman Property Fund (M-AAA), mainly due to investors’ confidence in fixed, constant returns and the property’s high potential.
Mr Tommy Taechaubol, MFC’s Executive Vice President of Business Development Division — in charge of Property & Infrastructure Funds at MFC Asset Management Public Company Limited (MFC), revealed a healthy response from the investors during the October 12-28 initial public offering (IPO) of MFC Amazing A-la Andaman Property Fund, or M-AAA, and its success in reaching the subscription target for the fund, which is due to investor preference for fixed, constant returns amid the investment uncertainties caused by concerns about the EU and US debt crises and the ongoing floods that are threatening the nation’s economic growth .
“M-AAA makes freehold investment in land, building and equipment of Phi Phi Island Village Beach Resort & Spa, a 4.5-star luxury resort hotel on Phi Phi Island, Krabi Province. The long leaseback arrangement ensures that investors will get a fixed return and hedging against any cyclical issues that may arise. The 15-year rental agreement also allows for income increases every three years, and 6 months security protection on the leased amount for the entire period of the contract, he said.
In addition to the excellent attributes conferred by the target property, the investors also welcome the managerial expertise of Outrigger Enterprises Group, a reputable Hawaii-incorporated hotel manager. Outrigger, one of the leading providers of management services for large hotels in the Asian Pacific region, has over six decades of experience in owning, developing and managing hotels and resorts in various countries across the globe, and it is currently managing 45 projects, which account for over 11,000 units of accommodation in Southeast Asia and nearby destinations, including Hawaii, Australia, Fiji, Guam, Bali, China, Vietnam, Thailand, etc.
He added that after the close of the IPO period, MFC will arrange for M-AAA investment units to be listed and traded on the Stock Exchange of Thailand.