Bangkok--13 Jun--SET
The Stock Exchange of Thailand (SET) will list Thai Hotel Investment Freehold and Leasehold Property Fund (THIF), a property fund with market capitalization record high of THB 26.2 billion (approx. USD 806 million), on the main on June 16.
Paveena Sriphothong, the SET senior vice president - group head Issuer & Listing, said that THIF would be listed and start trading on the Thai exchange in the Property Fund & REIT sector of the Property & Construction industry on this coming June 16. THIF’s market capitalization at IPO has become the highest among all property funds ever listed on SET since 2003. THIF sold 2.62 billion units at THB 10 per unit, a total worth THB 26.2 billion (approximately USD 806 million), during May 15 - 22, having Krungthai Asset Management pcl as fund manager.
Krungthai Asset Management pcl CEO Chavinda Hanratanakool said that THIF would invest in 10 freehold rights and 2 leasehold rights of hotel land and buildings, which comprised quality properties in prime tourist areas in Bangkok and other provinces, such as Phuket, Surat Thani and Chiang Mai, managed by world-class professional hotel chains such as Meridien S.A., Starwood Asia Pacific Hotels and Resorts Pte. Ltd, Hilton International Management Corporation, etc.
THIF will lease out 11 of its hotel properties to TCC Hotel Asset Management Co., Ltd, and one property to Paendintham Property Development Co., Ltd.under a three-year contract (renewable every three years for a maximum of 10 times). Each tenant will pay THIF fixed rent, by paying THB 384.03 million (approx. USD 11.8 million) in cash and THB 75 million (approx. USD 2.3 million) in bank guarantees as collateral for the first three years of lease, starting from the first day that the fund invests in all these 12 projects. THIF will likely be receiving additional returns from variable lease, growing in tandem with revenue earned by these properties.
THIF is a closed – ended fund, its dividend policy is to pay at least once a year, at no less than 90 percent of net profit, excluding unrealized gains from auditing property reappraisals of lease during the related accounting period. The fund’s top three unit holders after its IPOs are TCC Land Co., Ltd. (33.32 percent), UOB Kay Hian (Hong Kong) (16.86 percent) and Panachai Panichayakarn Co., Ltd (15.27 percent).
For more information, please see the fund’s prospectus at the Securities and Exchange Commission’s website at www.sec.or.th and general information on SET’s website at www.set.or.th .