Bangkok--23 Dec--MT Multimedia
SRIPANWA trust units has begun to trade on SET on 23 Dec, after receiving an enthusiastic welcome from SPWPF unitholders, Sponsor's (and Sponsor's connected parties') and Underwriter's patrons and institutional investors at the subscription price of THB 10.80 per unit. Their investment returns are believed to be attractive, driven by the properties' excellent location, service reputations and hotel management expertise, as well as by projected growth in the hotel sector and future infrastructure investments in Phuket.
Ms Vorada Thangsurbkul, First Executive Vice President for Investment Banking Coverage, 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 has its first trading day on 23 Dec and expects to generate attractive returns from assets' potential performance, after drawing healthy interests from unitholders of Sri panwa Hotel Property Fund, or SPWPF, and Sponsor's (and Sponsor's connected parties') and Underwriter's patrons and institutional investors, who subscribed trust units at THB 10.80 each, and after swapping SPWPF's assets and liabilities with SRIPANWA trust units as part of the conversion of SPWPF into SRIPANWA. At the par value of THB 11.3121 per unit, the net asset value of SRIPANWA is THB 3.157 billion.
SRIPANWA is the first real estate investment trust (or REIT) to be converted from a property fund. The purpose of its conversion from SPWPF is to facilitate acquisition of new assets or increase the size of its asset portfolio, to enhance returns and liquidity. The properties include (i) the initial asset from SPWPF, which is the Hotel Phase I, consisting of 45 luxurious Pool Villas and luxurious Pool Suite East units, each with their own swimming pool; and (ii) new assets, which include i) the Hotel Phase II, consisting of 30 rooms in the two luxurious buildings of the Habita; and ii) the resort home X29, a three-level resort home, altogether on a plot with total area of 6 rai and 50.6 square-wah (approximately 2.4 acres) in Phuket.
"We trust that the listing of SRIPANWA will provide a high return in the long run to unit holders, given the freehold property's superb location, with only 15km distance from the town area, which offers great potential for capital appreciation. At the subscription price of THB 10.80, the expected first year yield is 6.75%," she said.
Mr Vorasit Issara, Chairman of Charn Issara REIT Management Co Ltd, as the Settlor, REIT Manager and the Issuer of trust units, added that the company sees in SRIPANWA's assets great potential with a management team who are highly experienced and skilled in hotel management. Especially for the new assets, the 30 Pool Suite and Penthouse units (all of which offer a view of the Andaman Sea) and the luxurious, private five-bedroom resort home X29, which will attract high-end tourists.
In addition, the assets are expected to have high growth potential, given the booming hospitality industry and future infrastructure projects in Phuket, with the previous year's occupancy rate for five-star hotels on the island jumping to 71% (2014: 69%). For 2016, the rate is expected to rise to 75%. As for infrastructure projects, the Thai government is going to build, for example, the second expansion of Phuket International Airport to increase passenger capacity from 6.5 million to 12.5 million per year, which will boost Phuket's hospitality and tourism industries.