Bangkok--17 Nov--MT Multimedia
Sri panwa Hospitality Real Estate Investment Trust (SRIPANWA), the first REIT to be converted from a property fund, will commence its Preferential Public Offering (PPO) of its trust units to the unitholders of Sri panwa Hotel Property Fund (SPWPF), whose names are on the register book as of 14 Nov 2016, on a pro rata basis to their respective holdings with 2.5378 SPWPF units for 1 SRIPANWA trust unit, at THB 10.80 per share, on 25, 28-29 Nov 2016, to finance the acquisition of new assets, which consist of a hotel and a luxury resort home in Sri panwa Hotel, Phuket, a popular world-class tourist destination.
Ms Veena Lertnimitr, Executive Vice President for Primary Distribution, The Siam Commercial Bank Public Company Limited, as the Financial Advisor and the Lead Underwriter of Sri panwa Hospitality Real Estate Investment Trust, or SRIPANWA, revealed that SRIPANWA will be the first REIT to be converted from a property fund to offer the opportunity to invest in new assets and to enjoy growth in terms of assets, investment returns and liquidity. SRIPANWA, she added, will acquire the initial asset from SPWPF, which is the Hotel Phase I of 45 units, consisting of 38 luxurious Pool Villas, and 7 luxurious Pool Suite East units, each with their own swimming pool, on a land plot with total area of 21 rai, 2 ngan and 55 square-wah (approximately 8.5 acres) in Wichit Subdistrict, Muang Phuket District, Phuket Province.
At the same time, SRIPANWA will also invest in new assets which include i) the Hotel Phase II, consisting of 30 rooms in the two buildings of the Habita, which had a soft opening in January 2016; and ii) the resort home X29, a three-level resort home, altogether on a plot with total area of 6 rai 0 ngan and 50.6 square-wah (approximately 2.4 acres) in Wichit Subdistrict, Muang Phuket District, Phuket Province.
SRIPANWA will offer the total of 279,064,000 trust units: i) offering of 200,183,000 trust units to SPWPF to swap with the assets and liabilities under SPWPF (which is part of the conversion process for SPWPF to SRIPANWA); and ii) Preferential Public Offering (PPO) of 78,881,000 trust units for SPWPF investors whose names are on the register book as of 14 Nov 2016, who are eligible for subscription, on a pro rata basis to their respective holdings in SPWPF, with 2.5378 SPWPF units for 1 SRIPANWA trust unit, at THB 10.80 per share, with the subscription period on 25 and 28-29 Nov 2016. Unitholders of SPWPF who are eligible for the PPO may subscribe for the trust units according to their entitlement, more or less than their entitlement or not subscribe for the trust units at all. In the scenario where there are remaining trust units from the PPO, the remaining trust units will be offered to Sponsor's patrons and its connected persons, institutional investors and Underwriter's patrons, during the subscription period on 30 Nov 2016 and 1-2 Dec 2016.
Mr Songkran Issara, Chief Executive Officer, Charn Issara Development PCL, the owner of the new assets, noted that both the initial asset and the new assets feature great locations, and reputations for excellent service under sound management by the executives who are highly competent and experienced in hotel management; allowing the assets can fulfill the requirements and meet the expectations of both local and international tourists.
In addition the Hotel Phase II, consisting of 30 rooms in the two buildings of the Habita, and the resort home X29, a three-level resort home, on a plot with total area of 6 rai 0 ngan and 50.6 square-wah, which are the new assets, target customers who are tourists with less spending power when compared to those choosing to stay at the initial asset. The room sizes for the new assets are smaller, and the average room rates are lower. In addition, the new assets can help accommodate guests during when the Pool Suite East units (which are acquired from SPWPF) are fully booked.
Mr Vorasit Issara, Chairman of Charn Issara REIT Management Co Ltd, as the Settlor, REIT Manager and the Issuer of trust units, added that SRIPANWA is an attractive investment opportunity as the investing assets generate consistent income stream with long-term stability. In addition, the investing assets are located in Phuket, a world-renowned tourist destination in Thailand, which is visited by a large number of international tourists every year, who help to stimulate Phuket's overall hotel and tourism industry.