Bangkok--18 Mar--MT Multimedia
Strategic Hospitality Extendable Freehold and Leasehold Real Estate Investment Trust (SHREIT) formally introduced a new senior executive, Mr. Christophe Forsinetti, who will assume the position of Executive Director of Strategic Property Investors Company Limited (SPI). With this appointment, the Board reinforces its commitment to focus on the ASEAN region and capture stronger returns through the acquisition of additional properties.
Mr. Patan Somburanasin, Managing Director of SPI, the REIT manager of SHREIT, revealed that the Company's board of directors has appointed Mr. Christophe Forsinetti, an expert in ASEAN hospitality real estate, with the aim of taking advantage of South East Asia's thriving tourism industry. Forecasts are strong across the region, with Chinese middle-class tourists acting as a catalyst, and especially strong in Vietnam and Indonesia where SHREIT already owns assets.
When appointed, Mr. Forsinetti said: "I am thrilled to take-on the role of Executive Director. I believe SHREIT's growth targets will be met by successfully identifying quality hospitality real estate in the ASEAN region". Mr. Forsinetti also stated that the increasing number of tourist arrivals triggered a demand for more hotel rooms. Hotels with high international standards still lack in the region, with the exception of Thailand and Singapore. The environment provides a great opportunity for SHREIT to place itself as a key player and activate long-term growth by investing in established brands and high-quality hotels in the region.
Since its IPO, SHREIT's revenue growth was achieved through careful planning and effective decision-making. Instability in global markets forced the Trust to withdraw from an acquisition which impacted its Q4/2018 performance. However, it is important to note that the cost incurred from this withdrawal is a one-time only expense and dividend payment will still reach its targets in Q1/2019. Overall, the performance of the portfolio of hotels remains satisfactory.
"I have full confidence in SHREIT's growth strategy and in its portfolio of high-quality hotels. SHREIT's hotels are located in two of the ASEAN's most rapidly expanding economies. These investments are a testament to the REIT manager's expertise in the region's hospitality real estate market. We are currently studying the acquisition of more assets, and at the same time, we are considering improvements to assets we already own. I am confident that we will be able to make an announcement on these matters very soon. Finally, we are committed to delivering strong returns to the Trust's unitholders." Mr. Forsinetti concluded.
SHREIT is listed on the highly-liquid Stock Exchange of Thailand (SET), providing the Trust with cheap cost of financing. Additionally, Investors on the SET have a strong appetite for portfolio diversification. This appetite has played out in SHREIT's favor as it is the only REIT on the SET to offer high returns from a diverse portfolio of assets located in countries other than Thailand, making much less subject to competitive pressure.
The Trust's current portfolio includes the Pullman Jakarta Central Park Hotel in Jakarta, Indonesia, which is a 317-room 5-star hotel; the Capri by Fraser Hotel, a 175-room 4-star hotel; and, the IBIS Saigon South Hotel, a 140-room 3-star hotel both located in Ho Chi Minh City, Vietnam. The asset net worth of the Trust as of December 31, 2018, is US$143.2 million.