Bangkok--26 Dec--SET
The Stock Exchange of Thailand (SET) will list Strategic Hospitality Extendable Freehold and Leasehold Real Estate Investment Trust, under the ticker symbol "SHREIT", worth THB 3.53 billion (approx. USD 107 million), on December 27. SHREIT is a real estate investment trust (REIT), investing in Strategic Hospitality Holding Limited (BVI), a holding company with underlying assets in the form of extendable freehold and/or leasehold rights of three hotels in ASEAN.
SET Senior Executive Vice President Santi Kiranand said that SHREIT would list and start trading on SET in Property & Construction industry group, Property Fund & REITs sector, on December 27, 2017. SHREIT is the first REIT on SET that invests in foreign hotel properties.
SHREIT offered a total of 352.8 million units at THB 10.00 per unit to underwriter's benefactors and general public during December 13-15; and to business partners, trust managers, parties related to the trust manager, institutional investors and initial purchasers during December 18-19. SHREIT is managed by Strategic Property Investors Co.,Ltd. Its trustee is Krung Thai Asset Management pcl, while having Siam Commercial Bank pcl as its underwriter.
SHREIT is managed by professional and independent trust managers with extensive experience and expertise in hotel properties. Therefore, it is advantageous in the flexibility in setting investment policy aiming to generate highest return.
SHREIT Managing Director James Lim said that in the initial investment the fund raised would be used to invest in 100 percent stake of BVI. BVI will then indirectly invest in foreign holding companies to take 100 percent ownership in firms that own freehold and/ or leasehold rights of three hotels: Pullman Jakarta Central Park in Indonesia, Capri by Fraser and IBIS Saigon South in Vietnam. Currently these three to five-star hotels have a total number of 632 rooms in service and are managed by professional management teams with growth potential from economic, commercial, investment, and travel industry expansion.
SHREIT's dividend policy is to pay at least four times a year at no less than 90 percent of the adjusted net profit of its financial year. SHREIT's three major unit holders after its IPO are 1) Macquarie Capital Securities (Singapore) Pte Ltd (41.27 percent), 2) PT Agung Podomoro Land Tbk (18.12 percent) and 3) FWD Life Insurance Public Company Limited (8.50 percent).
For more information, please see SHREIT's prospectus at the Securities and Exchange Commission's website at www.sec.or.th, and the trust's general information at www.sh-reit.com, as well as www.set.or.th .