Bangkok--26 Nov--MT Multimedia
Thailand's leading property developer Singha Estate is planning to launch SPRIME, which will initially invest up to THB 5.7175 billion in a 30-year leasehold interest in Suntowers office buildings. The office buildings are strategically situated near Lat Phrao intersection, the new Bangkok's future business connectivity hub, surrounded by mass transit transportation, major retails and residential projects. Suntowers' occupancy rate has been steadily high, as of 31 August 2018 stood at 95.1%
MR NARIS CHEYKLIN, CHIEF EXECUTIVE OFFICER (CEO) OF SINGHA ESTATE PUBLIC COMPANY LIMITED, Thailand's leading property development and investment holding company, revealed that the company is launching S Prime Growth Leasehold Real Estate Investment Trust (SPRIME), the initial assets of which will include 30-year leasehold interests in part of the land on which Suntowers office buildings are situated and also included the office space, conference room, fitness center, mechanical and electrical facilities, common areas and parking areas within the office buildings, as well as freehold interests in movables for the management of the office buildings, which will be acquired from Max Future Company, a Singha Estate subsidiary.
Suntowers office buildings provide a superb location, with great proximity to Lat Phrao intersection on Vibhavadi-Rangsit Road, the new Bangkok's future business connectivity hub, where major mass transit infrastructure, retails and condominiums are all situated in the area. The Suntowers office buildings are located about 800 meters from Chatuchak MRT station and Mo Chit BTS sky train station. It is also close to entrance/exit ramps of Chaloem Maha Nakhon Expressway and Don Mueang Tollway. Moreover, in the neighborhood area, it is also conveniently located next to Max Future's Sun Plaza, which houses lifestyle shopping street markets and a large air-conditioned food court that are popular among locals. This strategic location also surrounded with numerous landmarks, that will create the convenient lifestyle for office workers and become the center of business connectivity, such as Chatuchak Park, Central Plaza Lat Phrao and Bang Sue Central Station, the new Bangkok's railway central terminal serves as South-East Asia's rail transport hub (under construction)
"Singha Estate has launched its first real estate investment trust (REIT), the initial investment of which will be in Suntowers, the high-value office buildings with strategic location. This is an important milestone to support Singha Estate's SMART M&A investment strategy. We also recently launched Singha Complex, the first luxury mixed-use in Asoke area, in which the REIT may probably invest in the future", said the CEO.
MRS THITIMA RUNGKWANSIRIROJ, CHIEF FINANCIAL OFFICER OF SINGHA ESTATE, ON BEHALF OF MAX FUTURE, the property manager, stated that Suntowers office complex, built on a five-rai plot (approx. two acres), consists of Tower A (32 floors) and Tower B (40 floors and one basement floor), the foundations are well-connected to each other. SPRIME has total space 118,828sq.m, including office space at 62,850sq.m. (net) and conference space at 944sq.m. The renovation has uplifted the image of interior and the building maintenance system to be more efficient, hence, more comfortable for tenants.
As of 31 August 2018, the occupancy rate stood at 95.1%, with the average office rent (and service charge) rate at THB 572 per sq.m. per month. The majority of the tenants, in total 62, are reputable Thai and foreign companies. Their business cover wide rage of industries such as finance, investment, insurance, and electronic device manufacturing, which means that the business risks are effectively diversified.
MR KETKORN KEMATORN, MANAGING DIRECTOR OF S REIT MANAGEMENT, the REIT Manager, added that SPRIME overall performance is going to be strong, given the high quality of its initial assets and the constantly higher annual-average rental rates over the past three years (2015-17). The strategic location at Lat Phrao intersection, with short distances from Don Mueang International Airport and existing and under-construction sky train stations, will be considered as one of the northern Bangkok's business connectivity hub with has excellent growth potential.
MR EKKAPOB MAKEGULJAI, EXECUTIVE VICE PRESIDENT, HEAD OF MARKET SALES AND PRODUCT SOLUTIONS GROUP, KRUNG THAI BANK PUBLIC COMPANY LIMITED, as Financial Adviser, commented that up to THB 5.7175 billion funds will be invested in SPRIME's initial assets, which will be raised by loans (up to THB 1.350 billion) and by an offering of investment units (up to THB 4.467 billion / THB 10 per unit / up to 446.75 million units). He also noted that to win investor confidence, Singha Estate and/or related parties will hold at least 15% of the units to be issued and offered.
Max Future Company, a Singha Estate subsidiary with experience in managing the group's head office buildings, has been nominated to serve as manager of SPRIME's initial assets. This guarantees that the buildings will be managed professionally, and the assets' performance will remain satisfactory, especially in terms of occupancy and rental yields, thus offering the best returns to the unitholders.