Bangkok--19 Aug--Stock Exchange of Thailand
The Stock Exchange of Thailand (SET) will list Prospect Logistics and Industrial Leasehold Real Estate Investment Trust, which invests in Bangkok Free Trade Zone project, with an initial investment of THB 3.5 billion(approx. USD 112.1 million), on August 20, 2020, under the ticker symbol "PROSPECT".
SET Senior Executive Vice President Manpong Senanarongsaid that PROSPECT would list and start trading under Property & Construction industry, Property Fund & REITs sector.
PROSPECT invests in sublease rights of partial land and buildings of Bangkok Free Trade Zone project located on Bangna-Trad Road, km 23. The sublease rights include industrial zone covering General Zone, and Free Zone where operators are eligible to tax incentives such as exemptions of import and export duty, value added tax and excise tax. The project's area for rent covers 63 buildings, comprising 183 units of ready-built warehouses, large and small factories, as well as built-to-suit buildings, with a combined rental area of 219,116 square meters, andoccupancy rate of 93.6 percent.
PROSPECT allocated 245 million trust units at THB 10.00 each, for a total of THB 2.45 billion to general public between August 7 and 10-11, 2020. The fundraising and banks' loans will be used as initial asset investment worth THB 3.5 billion. SCB Asset Management Co., Ltd. is its trustee. Tisco Bank pcl serves as financial advisor, and Tisco Securities Co., Ltd. is its underwriter.
Aon-Anong Chaithong, Co-Chief Executive Officer of Prospect REIT Management Co., Ltd., and PROSPECT's Manager, said Bangkok Free Trade Zone project, which is PROSPECT's initial asset investment, is potential asset covering General Zone and Free Zone with a variety of warehouses and factories to serve entrepreneurs’ demand in different area sizes. Furthermore, the project's location is attractive to Thai and foreign operators as it is on the outskirts of Bangkok, as such convenient forbusiness contact, including land and air transportation. The REIT has hired Prospect Development Co., Ltd. which has over a decade of expertise in managing Bangkok Free Trade Zone project while providingone-stop service essential for business setupsuch as free zone and factory licenses, investment promotion certificate, and many more. Currently, the project's tenant structure is diversein terms of both nationality and business category such as paper business, plastic industry, recycle, animal feed and logistics service industries, among others. PROSPECT has estimated the first-year yield of THB 1.112 per unit, representing 11.1 percent.
PROSPECT's dividend policy is to pay at least on a semi-annual basis at no less than 90 percent of the adjusted net profit of its financial year. Four major unit holders after the IPO are Finansa pcl (22.99 percent), M.K. Real Estate Development pcl (8.16 percent), Allianz Ayudhya Assurance pcl (4.08 percent) and Krungthai-AXA Life Insurance pcl (4.08 percent).
For more information on PROSPECT, please see its prospectus at the Securities and Exchange Commission's website at www.sec.or.th ; and for general information, please visit www.prospectreit.com , as well as www.set.or.th.