Bangkok--11 Nov--JWT Public Relations
The company hopes to override inflation with return from the property fund
MFC Asset Management Public Company Limited (MFC) makes a bold stride through the global recession with launch of MFC-Nichada Thani Property Fund 2 (MNIT 2), a property fund of Bt1.329 billion with an indefinite life. The fund focuses on freehold property, investing in land and single houses of The Regent residential project within Nichada Thani Chaengwattana multi-national community. With the IPO running from 17 November to 1 December, 2008, the company hopes to attract fourth-quarter investment in property funds after a series of success from its management in MNIT and MNRF funds.
Dr. Pichit Akrathit, President of MFC Asset Management Public Company Limited (MFC), says that the highly volatile money and capital market across the world has prompted MFC to give investors an alternative choice for investment with the launch of MFC-Nichada Thani Property Fund 2 (MNIT 2). The closed-end Bt1.329-billion property fund has an indefinite life and will be offered to pubic on 17 November -1 December, 2008. It will invest in freehold of 76 two-storey single houses with a utility space of either 399 and 435 square meters locating within Nichada Thani The Regent residential project at an average unit price of Bt17.1 million. The Regent is the latest development within Nichada Thani Chaengwattana project known for its large community of expatriates who work in Thailand. It is currently 80% completed and is expected to be finished by January 2009.
The attractiveness of MNIT 2 is its constant returns from the dividend payout policy with maximum of four times per year and at least 90% of its net profit. The fund rents out all its acquired properties back to Nichada Thani over a period of seven years and two months to enjoy return in the form of monthly rental fee. As an effective risk management measure, the fund requires a rent contract whereby Nichada Thani makes a 9-month advance rental deposit. In addition, since the properties are freehold, the fund reserves the full rights to sell off the assets at any time after the third year if it sees opportunity to make better gains for its investors without breaching the contract with Nichada Thani.
The strength of Nichada Thani lies in its credentials as the first successful developer of communities for expatriates in Thailand who prefer to live in a residential area that offers the quality of life akin to that in their homeland and belong to a multi-national community with neighbors of similar lifestyles. The nearby International School Bangkok (ISB) is another main attraction situated in this residential project.
Dr. Pichit explains further that MNIT 2 is suitable for investors who are prepared for an investment period of 3-5 years and like a constant return in the form of dividends. Property funds serve as a good choice of investment in the current situation where inflation is high because they offer better return compared to interest rate from bank savings deposit and investment in debt instruments. Also they have relatively lower risk than investing in the highly fluctuate stock market.
He continues further by reporting the performance of MFC’s first property fund, MFC Nichada Thani (MNIT). The fund has already made 13 dividend payments worth a total of Bt205.5 million during the period of 2005-2008. More recently, MFC Multi-National Residence Fund (MNRF), which was registered in May this year, has already made a dividend payout of Bt30.4 million or Bt0.283 per unit for the operating period of May-September 2008.
Investors who are interested in MNIT 2 are invited to subscribe for the investment units with a minimum of Bt1,000 during the IPO from 17 November to 1 December, 2008. For more information, please contact MFC at 0-2649-2000 dial 2 for Investment Planning Division or dial 0 for Client Service or visit www.mfcfund.com.
There is risk associated with investment; investors should carefully study information before making the decision to invest.
Past fund performance of a mutual fund does not guarantee its future performance.
The Fund is under the approval process from the Office of the Securities and Exchange Commission.
Further queries, please contact
Khun Sutasikar Khurat, Khun Suwanna Chewanantachai
MFC Asset Management Plc: Tel. 0-2649-2230, 0-2649-2232
Khun Wongchan Tangsongsak, Khun Trungrutai Sundos
JWT Public Relations: Tel. 0-2204-8221, 0-2204-8078, Fax. 0-2259-9246