Bangkok--21 Dec--SET
The Stock Exchange of Thailand (SET) will list LH Hotel Leasehold Real Estate Investment Trust worth THB 3.14 billion (approx. USD 87.6 million) on its main board on December 22, under the ticker symbol "LHHOTEL," as the first REIT investing in hotel.
SET Executive Vice President Santi Kiranand said that LHHOTEL would list and start trading on the Thai bourse's Property & Construction industry group, Property Fund & REITs sector, on December 22. LHHOTEL offered 313.66million units via an initial public offering (IPO) at THB 10.00 per unit during November 27-December 9, with total value of THB 3.14 billion. LHHOTEL was managed by Land and Houses Fund Management Co., Ltd. Its trustee was SCB Asset Management Co., Ltd., while Siam Commercial Bank pcl was its financial advisor and underwriter.
LHHOTEL has invested in the leasehold rights in Grande Centre Point Terminal 21 hotel, in central Bangkok, with more than 85 percent occupancy rate, for 25 years (until end of August 2040) and the ownership in the movable properties in hotel owned by L&H Property Co., Ltd., a subsidiary of Land and Houses pcl (LH). LHHOTEL has also been granted permission to use the connecting area between BTS sky train at Asoke station and Terminal 21 shopping center.
Land and Houses Fund Management Co., Ltd. President Chantana Kanchanagama said LHHOTEL has invested in Grande Centre Point Terminal 21 hotel, a modern hotel located on Asoke-Sukhumvit intersection, a prime location in Bangkok connecting to a shopping mall and a main junction between the BTS skytrain and the MRT subway stations, resulting to high growth opportunities on the occupancy rate and revenues. LHHOTEL would be able to gain both fixed and variable income according to the agreement with the sub-tenants and managed by Pacific Real Estate Co., Ltd., LH's subsidiary, as such LHHOTEL could provide good returns for the trust unit holders in the long run.
LHHOTEL's dividend policy is to pay at least twice a year at no less than 90 percent of the adjusted net profit of its financial year. LHHOTEL's three major unit holders after its IPO are Pacific Real Estate Co., Ltd. (9 percent), GIC Private Limited (6 percent) and Peera Patamavorakulchai (3.19 percent).
For more information, please see LHHOTEL's prospectus at the Securities and Exchange Commission's website atwww.sec.or.th , and www.lhhotelreit.com, as well as general information on SET's website at www.set.or.th