Bangkok--28 Nov--M T Multimedia
Hemaraj REIT Management Co, the REIT manager of Hemaraj Leasehold Real Estate Investment Trust (HREIT), will make its listing debut on the Stock Exchange of Thailand today and is confident to receive a good feedback from investors. The HREIT is attractive with an estimated return on investment of 7.75% in the first year while its assets are located in prime locations. Its leasehold right can be extended up to 60 years. Mr. Paopitaya Smutrakalin, Senior Managing Director of Hemaraj REIT Management Co, reveals a plan to further invest in potential assets in the future.
Mr. Paopitaya Smutrakalin, Senior Managing Director of Hemaraj REIT Management Co, the REIT manager of Hemaraj Leasehold Real Estate Invest Trust (HREIT), said HREIT is making its debut on the Stock Exchange of Thailand today after selling its trust units at 10 Baht each in mid November.
HREIT units got a strong interest from unit holders of WHA Premium Growth Freehold and Leasehold Real Estate Investment Trust (WHART), which have rights to subscribe HREIT, and institutional investors as well as the underwriters' patronages. The REIT manager is confident that HREIT is an investment alternative to generate good returns to investors during the lease term up to 60 years with the estimated yield at 7.75% in the first year. HREIT has its dividend policy to pay dividends maximum four times a year with the payout ratio at 90% of total net profit after adjustment for the fiscal year.
Moreover, Mr Paopitaya noted that the company has plans to continue investing in high potential properties. Presently, HREIT invests in leasehold rights for land and high quality factories and warehouses with combined space of 261,314 square meters located in six industrial estates owned by Hemaraj Land And Development Plc. in the Eastern Seaboard, the country's strategic location for industrial development. Its lease term is 30 years with option to renew for another 30 years, totaling of 60 years.
"As the REIT manager, we would like to thank Hemaraj Land And Development Plc, as the sponsor and the property manager, Siam Commercial Bank as the financial adviser and the underwriter, and SCB Asset Management as the trustee, as well as all related parties and all investors who trust and overwhelmingly respond to the sales of HREIT units. We have a determination to manage the trust for the highest benefit of unit holders," Mr Paopitaya said.
Ms Veena Lertnimitr, Executive Vice President, Primary Distribution, at Siam Commercial Bank, which is the HREIT's financial adviser and underwriter, said we are confident that HREIT will get a good feedback from investors as it has strengths in asset quality and location, which is located in the Eastern Seaboard, the major industrial development for the country and the region. It expects to benefit from the government's economic stimulus measures such as the economic development in the Eastern Seaboard and Mega Infrastructure Projects.
Besides, HREIT is under the property management by Hemaraj Land And Development, the leading Industrial Estate Developer in Thailand, which has a long-time experience and reputation among the investors. With all these factors, they reaffirm the strength and the future growth potential of HREIT units.
"Investors can invest in HREIT units on the Stock Exchange of Thailand from Nov 28. HREIT is listed on the property fund and the real estate invest trust sector and those who want to know more about HREIT, please go to www.hemarajreit.com and www.set.or.th," Miss Veena said.