Bangkok--24 Oct--Media Planner Consultant
WHA Premium Growth Real Estate Investment Trust (WHART) announces its fourth capital increase to invest in additional assets with investment size not exceeding 4,880.25 million baht. WHA Group CEO "Jareeporn Jarukornsakul", the property manager for WHART, says the strength of the assets to be sold into the trust are WHA's premium built-to-suit warehouses & factories, completed with utilities-energy and digital infrastructures. Besides, WHART CEO "Narumol Tantayawit" reveals after the capital increase, total assets of the trust will reach 38 billion baht. It plans to offer the new trust units not exceeding 323.78 million units at the offering price not higher than 16.90 baht/unit. The sale of new trust units will be launched in this November and the acquisition of assets by the trust will be completed in December 2019.
Miss Jareeporn Jarukornsakul, Group CEO of WHA Corporation Plc, the sponsor and property manager under WHA Group, said WHA Premium Growth Real Estate Investment Trust (WHART) is the real estate investment trust investing in recurring-income properties. WHA Group as the sponsor and the property manager, has gradually injected its assets into WHART since the trust's initial public offering (IPO) in 2014. Most of WHA Group's assets are premium built-to-suit warehouses & factories, with completed range of infrastructures from utilities, energy to digital technology.
Moreover, most of WHA Group's projects are well located in strategic logistics areas of the country, which are in line with the development of Eastern Economic Corridor (EEC) supported by the government. With all these supportive factors, demand for warehouses, factories and distribution centers in EEC has been on a rising trend in the past few years, aligned with WHA Group's business development strategy, which aims to support the development of 10 targeted industries of Thailand.
Miss Narumol Tantayawit, CEO of WHA Real Estate Management, REIT manager of WHART, noted that the objective of WHART's fourth capital increase is to invest in 5 additional assets at the price not exceeding 4,880.25 million baht. These additional projects include 3 freehold projects and 2 leasehold projects with the net leasable areas of 155,237 square meters. Of the total net leasable areas, 90% are located in Bang Na-Trat zone and the remaining 10% are located in the EEC. Besides, there are rooftop leasable areas of 71,482 sq m and parking areas of 2,983 sq m, altogether on the land area of 172 rai and 226.75 sq wah.
The projects include 1) the DTS factory in WHA Chonburi Industrial Estate in Tambon Borwin, Sriracha District of Chonburi, 2) the Roechling factory in WHA Eastern Seaboard Industrial Estate 1 in Tambon Khao Kansong, Sriracha district of Chonburi, 3) WHA Mega Logistics Center (Chonharnpichit KM 3 Phase 1) in Tambon Bang Pla, Bang Phli district, Samut Prakarn, 4) WHA Mega Logistics Center (Chonharnpichit KM 3 Phase 2) in Tambon Bang Pla, Bang Phli district of Samut Prakarn, 5) WHA KPN Mega Logistics Center (Bang Na-Trat KM23 Phase 2) in Tambon Bang Sao Thong, Bang Sao Thong district of Samut Prakarn.
The assets that WHART will invest in are strategically located in the country's key logistics areas including the projects in the EEC. This will enhance values to the trust in the long run. Moreover, the tenants are those in E-Commerce business, which is considered a mega trend industry with high growth potential, and some are manufacturers of auto parts and plug-in hybrid car technology. A variety of tenants makes the trust more diversified.
Together with this, it is expected that the investment in additional assets will make the total assets of WHART exceed 38 billion baht, up from 33.214 billion baht. This will drive WHART to be the top three in REIT industry for warehouse, factory and distribution center. This capital increase will also generate steady return to the trust unitholders. Post transaction, the proportion of freehold and leasehold assets of the trust will be maintained at 67% and 33%, which will mitigate the risks of declining asset values in the future. Also, the occupancy rate of the trust's assets will be maintained at 90% with strong tenant profiles and financial status.
"After WHART completely invests in these assets, the trust is expected to pay higher total distributions to unitholders, which is estimated around 0.79 baht per trust unit, based on the reviewed pro forma by the auditor. This represents total distribution yield from both dividend and capital decrease of around 4.67%, when calculated from the trust unit offering price not exceeding 16.90 baht,".
Miss Raveeratana Satchavarodom, Head of Investment Banking Business Division from Kasikornbank, the financial advisor and the lead underwriter of WHART trust units, said existing WHART unitholders will be able to subscribe WHART new trust units from the fourth capital increase, which will total not exceeding 323.78 million units at the offering price not exceeding 16.90 baht per trust unit during Nov 12-15, and 18, 2019, while the general public (based on the consideration of the lead underwriter) will have a chance to subscribe new trust units during Nov 19-22 and 25, 2019. The transfer of assets will be completed by the end of 2019.
WHART has its strength in generating steady dividends to unitholders and its top 5 ranking in asset size among all trusts in Thailand. Furthermore, its warehouses, factories and distribution centers are high potential with international standards, and are well located in strategic areas for the country's logistics development including the EEC, which can attract foreign investors. On top of that, the property management team is very professional with experiences for several properties of WHA Corporation Plc. All of these are the strong support for investment confidence in WHART.