Ms Veena Lertnimitr, Executive Vice President for Primary Distribution, The Siam Commercial Bank Public Company Limited, as the Financial Advisor and the Lead Underwriter of Sri panwa Hospitality Real Estate Investment Trust, or SRIPANWA, revealed that SRIPANWA drew healthy interests from the investors during the subscription period on 25, 28 and 29 Nov 2016 for eligible unitholders of Sri panwa Hotel Property Fund, or SPWPF, and on 30 Nov and 1 and 2 Dec 2016 for Sponsor's and Underwriter's patrons and institutional investors.
The enthusiasms indicate the investors' confidence in the potential of SRIPANWA's properties. The properties include (i) the initial asset from SPWPF, which is the Hotel Phase I, consisting of 38 luxurious Pool Villas, and 7 luxurious Pool Suite East units, each with their own swimming pool, on a land plot with total area of 21 rai, 2 ngan and 55 square-wah (approximately 8.5 acres) in Wichit Subdistrict, Muang Phuket District, Phuket Province; and (ii) new assets, to be acquired from CIR, which include (i) the Hotel Phase II, consisting of 30 rooms in the two buildings of the Habita, with a soft opening of which took place in Jan 2016; and (ii) the resort home X29, a three-level resort home, altogether on a plot with total area of 6 rai 0 ngan and 50.6 square-wah (approximately 2.4 acres) in Wichit Subdistrict, Muang Phuket District, Phuket Province. They will generate decent and constant returns from rental revenues, which will step up continuously due to their excellent locations and highly competent and experienced management.
"Sri panwa has reputations for excellent service. It is popular among the local and international tourists who love to spend their vacation days in Phuket and see it as a prominent and unique hotel compared with other hotels on the island. Therefore, it attracts and serves tourists year-round," she said.
Mr Vorasit Issara, Chairman of Charn Issara REIT Management Co Ltd, as the Settlor, REIT Manager and the Issuer of trust units, added that Sri panwa Phuket is a promising hotel run by professional management team and benefiting from the growing tourism industry in Phuket, which is visited by a large number of local and international tourists. As for the conversion of SPWPF into SRIPANWA, he noted that the book closing date for determination of the SPWPF unitholders who will be eligible for an XO-swap between SPWPF's assets and liabilities and SPWPF trust units will be on 15 Dec 2016, while the last trading day for SPWPF will be 8 Dec 2016. SPWPF units will no longer trade in the Stock Exchange of Thailand starting 9 Dec 2016.
SRIPANWA is the first real estate investment trust (or REIT) to be converted from a property fund. The fund raised from the offering of SRIPANWA trust units to finance acquisition of new assets is totaled to THB 851.91 million (excluding the value of the initial asset to be acquired from SPWPF). The first trading day for SPWPF is expected to fall in late Dec.