Bangkok--5 Aug--PRDD
Mr. Amorn Chulaluksananukul, Managing Director of TICON Management Co., Ltd. (TMAN) and manager of the TICON Freehold and Leasehold Real Estate Investment Trust (TREIT), revealed that TREIT unitholders had voted to approve additional asset investments – including factories for lease by TICON Industrial Connection Plc. (TICON) and warehouses for lease by TICON Logistics Park Co., Ltd. (TPARK) – with a maximum investment value of 3,355 million baht inclusive of transaction expenses. Target assets for this round of investment comprise of two main categories: (1) 12 units of assets approved previously by unitholders (from the Annual General Meeting) totaling up to 472.29 million baht, and 41 new units totaling up to 2,827.71 million baht.
The assets chosen for this new round of investment are located in 11 high-potential strategic locations for logistics and include both freehold and leasehold in status. 82% of the assets is warehouses, while the other 18% is factories. Once completed, the additional investment will lift up TREIT’s total asset value to up to 7.64 billion baht with a freehold-leasehold ratio of 61% to 39%.
Mr. Amorn explained that funds for the investment will be raised from issuing new trust units of up to 2.35 billion baht in value or up to 241 million trust units to be issued, with at least 50% rights offering made available to current trust holders and the remaining (if any) to the public offering at the same price. The price will be indicated by marketing conditions at the time of sale. Furthermore, an additional 1,005 million baht will be secured through long-term loans from financial institutions.
“The additional investment will not only expand the size of TREIT but also make it more attractive in the eyes of domestic international investors. It will also improve liquidity, while current unitholders will not see any reduction in returns. TREIT’s policy calls for at least two dividend payments per year at the minimum ratio of 90% of adjusted net profit, making it a very interesting alternative for investors of consistent returns over the long term investment,” Mr. Amorn added.
“TREIT’s growth strategy not only focus investments in TICON Group’s assets but alsoassets outside from the Group’s ownership. With our active management approach, we continue to find opportunities in domestic and international property markets as well as the possibility to establish REITs for the other new class of assets. However, our initial focus is on assets in Thailand.
Given the low savings interest rate, we are confident that TREIT’s investment in high-quality assets and high dividends will garner a warm reception from investors. Our growth plans will march on. The long-term objective is to become a regional-level trust with 20 billion baht in net asset value within four years,” Mr. Amorn concluded.