SHREIT Delivers Best of Class Annual Returns, Aims to Expand SE Asias Hospitality Assets

Event Calendar Press Releases Monday January 27, 2020 11:04
Bangkok--27 Jan--MT Multimedia

SHREIT Trust reinforces its executive team, determined to turn it into the largest Real Estate Investment Trust in Thailand to have acquired hotels in overseas markets and to continue providing a high return of distribution payment.

The Strategic Hospitality Extendable Freehold and Leasehold Real Estate Investment Trust (SHREIT) is reinforcing its executive team and strengthening, determined to be Thailand's largest trust focusing on hospitality investment in Southeast Asia and generate a best of class high rate of return for investors.

SHREIT is being managed by an independent trust management company, Strategic Property Investors Co., Ltd. (SPI).

Mr. Christophe Forsinetti, Managing Director of Strategic Property Investors Co., Ltd. (SPI), an independent professional REIT management firm and the manager of SHREIT points out that SHREIT is the only REIT trust registered with the Securities Exchange of Thailand that focuses investment on properties in overseas markets. Currently, the hotels in its portfolio include Capri by Fraser and Ibis Saigon South in Vietnam's Ho Chi Minh City and Pullman Jakarta Central Park in Indonesia. Both countries, it should be noted, are among countries experiencing the strongest growth in the world.

Since its establishment, SHREIT has distributed more than 300 million baht in dividends to its investors, which is equivalent to an annual return of 7% on average. For the operation result of 9 months of 2019, the trust has distributed 0.49 baht per unit of investment to investors or at the annual rate of 8.94% compared to the average unit price of that period. For this reason, SHREIT is regarded as a trust that generates high returns and an interesting alternative of risk diversification for investment to cope with fluctuations in the world's stock markets. In particular, if compared with the stock market value which is 0.65 times lower than the net property value, the return on investment for the Trust thus amounts to more than 10%.

"SPI plans to increase the size of the trust in 2020, to be managed by a team of experienced and capable professionals who will lay down strategies to source uniquely high-quality properties. These properties are expected to generate high returns for unitholders on a sustainable basis," says Christophe Forsinetti, SPI Managing Director.

SPI focuses on acquiring properties located in expanding economies in the ASEAN region. These countries' high growth rates will have a positive impact on the growth of the hospitality industry while they currently have limited numbers of hotels meeting international standards, particularly those in the economy and mid-upper ranges. These segments are subject to low competitive pressure and therefore there are ample rooms for more efficient management services to boost revenues.

Meanwhile, Mr. Krit Phanratanamala, Independent Director of SPI, also notes that a significant factor, which would be beneficial for this round of property acquisition, is the appreciation of the baht.
"SHREIT is a positive channel of investment because it opens up opportunities in a region which sees one of the highest growth rates in the world," Mr. Krit says.
"The lower investment cost because of the strong baht coupled with the higher growth rate than that in Thailand would give us an opportunity to achieve a favorable rate of return on investment."

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