Bangkok--15 Nov--MasterMind Communications
As a way to offer increased liquidity to investors, MFC has completed the SET listing of the investment units of MFC Amazing A-la Andaman Property Fund (M-AAA), and the securities will become tradable on the stock market on November 15. The Company is confident that the tourism sector of Thailand’s Andaman region will not be affected by the recent flood crisis and will record a positive growth, and that the Fund’s property will provide good investment returns.
Ms Prapa Puranachote, President of MFC Asset Management Public Company Limited, revealed that after making the successful initial public offering (IPO) of investment units of the THB 2.12 billion MFC Amazing A-la Andaman Property Fund, or M-AAA, which, despite the ongoing flooding in various areas of Thailand, including parts of Bangkok, received a healthy response from the investors, her company has listed the Fund’s investment units on the Stock Exchange of Thailand (SET). She added that the securities will commence trading on the stock market on 15 November 2011 under the trading symbol “M-AAA”, which will be shown in the property funds segment of the property & construction sector.
“We believe that the M-AAA units, once listed on the SET, will become highly attractive, because during the IPO the Fund received a very good response from the investors. In addition, trading of the Fund’s units will give investment opportunities on the secondary market to a large number of investors who, due to the flooding in several areas, including Bangkok, have been unable to subscribe to the units during the IPO, and the availability of the securities in the stock market will boost their liquidity for the benefit of the investors,” she noted.
Mr Tommy Taechaubol, MFC’s Executive Vice President of Business Development Division — in charge of Property & Infrastructure Funds, said that real estate investment is a great choice for the investors seeking diversified investments that offer constant returns, amid the uncertainties associated with the current European debt crisis, of which Italy is likely the next victim, as well as the US economic slump, which still shows no sign of recovery. The flooding in Thailand are threatening the country’s agricultural and industrial production outputs, and, hence, its overall economic growth rate. Investment in property funds, he added, is an interesting alternative, because, notwithstanding the economic cycle, property values usually increase in the long run and beat inflation.
“We believe that the natural disaster will affect tourism businesses in some areas only, and to the exclusion of those at major destinations in the Andaman region. Especially, we believe that
M-AAA will record the forecasted growth rate and will not be affected by the recent flooding situation or economic downturns, considering the average occupancy rate of 85% which has been achieved over the past five years by the Fund’s property Phi Phi Island Village Beach Resort & Spa, a 4.5-star luxury resort hotel on Phi Phi Island, Krabi Province,” he noted.
M-AAA makes freehold investment in land,building and equipment of the hotel. The Fund will allow Phi Phi Village Asset Management Company Limited, the hotel’s original and current management company, to lease it back for 15 years and will receive income at fixed rates, which will increase every three years. It will also enjoy 6 months security protection on the leased amount. In addition, the Fund has secured the service of Outrigger Enterprise Group, one of the leading providers of management services for large hotels in the Asia Pacific region. Outrigger has over six decades of experience in 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.
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