Bangkok--15 Sep--BBLAM
BBL Asset Management (BBLAM) announces the 4th capital increase of Ticon Property Fund (TFUND). The additional investment units will be offered exclusively to the existing unitholders (Rights Offering). TFUND will invest additional immovable properties, the fund shall own 36 more factories and land which locate in 8 locations of industrial estates, industrial promotion zones, and industrial parks in Thailand. The capital increase would raise TFUND’s liquidity and diversify its investment portfolio. Up to now, TFUND has paid dividends for 22 times over the past five years of its listing.
Deputy Managing Director, Property Fund Business Group, BBL Asset Management, Mr. Sudhipongse Phuaphanprasert, said TFUND is planned to increase its additional investment units by 164.2 million. The units will be offered to the exiting unitholders whose names appear in the register book of unitholders as at 22 September 2010, at the ratio of 1 existing investment unit per 0.216 new investment unit. The offering price is Baht 10.45 per unit, and the subscription period shall be in 4-8 October 2010.
The purpose of this capital increase is to invest in 36 more factories with its aggregated rentable space of 89,685 square meters which are situated in 8 industrial estates, industrial promotion zones, and industrial parks in Thailand. After all TFUND shall have 210 factories and warehouses for rent with total aggregated rentable space of 487,109.5 square meters.
Mr. Sudhipongse added that TFUND has proven track record, it has made 22 consecutive dividend payment over the past five years of listing, approximately Baht 0.20/unit quarterly. By the nature of freehold investment, the fund will benefit from property appreciation in long term. In addition, the properties have been managed by professional property manager, TICON Industrial Connection Public Company Limited (TICON), one of the leading industrial developer companies for standard factories for rent in Thailand. Therefore, we strongly believe that this round fund raising will gain positive response from investors.
The Managing Director of TICON Industrial Connection, the SET-listed industrial estate developer, Virapan Pulges, said the revenue growth this year will be mainly driven by an increase in warehouse and factory rentals, especially supported by demand from the electronics, auto parts, logistics, and food industries. These industries are still expanding in line with global demand. The renewal rate since January 2010 reached its high occupancy level of 90%, which is higher than an average rate of 80% at normal market situation.
TICON develops industrial properties and leases them out mainly to foreign manufacturers. About half of the customers are Japanese. This year, TICON plans to allocate Baht 1,500 million to expand factory and warehouse areas by 120,000 square meters, to meet demand and to replenish the rental areas sold to TFUND. The company plans a new warehouse project of 40 rai on the Eastern Seaboard to serve the growth of the automobile industry.
For further information, please contact BBL Asset Management on 0 2674 6488, extension 8 investment in mutual fund contains some degree of risks, investors should study prospectus and information before investing.