Bangkok--27 Dec--MT Multimedia
The Strategic Hospitality Extendable Freehold and Leasehold Real Estate Investment Trust (SHREIT) has set its First Trading Day on the Stock Exchange of Thailand (SET) on December 27 after a successful IPO of its units at 10 Baht par each that was overwhelmingly received by retail and institutional investors.
SHREIT is billed as an attractive investment avenue for Thai investors desiring to invest in a diversified portfolio of high-quality hotels in ASEAN that cater to specific target groups of tourists, businessmen and local consumers. It is managed by professional managers who are committed to generate maximum returns for investors, with returns in the first year targeted at 7.67-7.72%.
Mr. Patan Somburanasin, Managing Director of Strategic Property Investors Co. Ltd. (SPI), the REIT Manager, stated that the initial public offering of SHREIT had been well received by retail and institutional investors because they were confident that the three hotel properties in which SHREIT has invested will generate consistent returns as they will be managed independently from the properties' sponsors.
"We are confident that after SHREIT begins trading on the SET, it will be well positively by investors because our diversified portfolio of three hotels in ASEAN are high-quality properties that are professionally run by the Accor Hotels and Frasers Hospitality groups. Strong fundamentals in regional trade, investment and tourism will further support the properties' revenue growth," Mr. Patan said.
Mr. James Lim, SPI Executive Director, explained that SHREIT's initial assets include extendable freehold and leasehold rights in three hotels in the region ranging from 3-5 stars, namely the Pullman Jakarta Central Park in Indonesia and the Capri by Fraser and IBIS Saigon South in Vietnam with a combined total of 632 guestrooms.
According to Mr. Lim, the three hotels are outstanding properties catering to different specific target groups. The Indonesian hotel will benefit from a domestic clientele of tourists and consumers with high purchasing power as well as the growing number of foreign visitors that help generate stable revenues and cash flows.
Meanwhile, the two hotels in Vietnam are benefiting from the country's strong economic growth which is attracting a large number of foreign businessmen and investors as well as foreign leisure visitors that are supporting steady growth for the properties.
Mr. Artapong Porndhiti, Executive Vice President, Investment Banking Division of Siam Commercial Bank as Financial Advisor and Lead Underwriter, noted that the independence of SHREIT's REIT Manager means greater flexibility to acquire additional new properties that will support consistent growth in the long run.
He added that SHRET has enabled Thai investors to diversify their investment risks since the properties are spread out in the region as against other existing hotel REITs that have invested only in Thai assets.
Ms. Veena Lertnimitr, Executive Vice President, Primary Distribution Division of Siam Commercial Bank, as Financial Advisor and Lead Underwriter, commented that all three SHREIT properties are quality foreign hotels located in important economic zones that have strong growth potentials. These positive factors will help generate satisfactory returns for investors, with returns in the first year projected at 7.67-7.72%.