#STRATEGIC PROPERTY# Launches SHREIT Investing in Freehold and Leasehold rights of 3 quality hotels in ASEAN With strong growth potentials, expecting Annual Returns of 7.67-7.72%

Stocks and Financial Services Press Releases Thursday December 7, 2017 12:58
กรุงเทพฯ--7 ธ.ค.--MT Multimedia

The Strategic Property Investors Co.,Ltd (SPI) has launched The Strategic Hospitality Extendable Freehold and Leasehold Real Estate Investment Trust or SHREIT to raise up to 3,740 million baht to invest in renewable rights to operate and lease three 3-5 stars hotels in the ASEAN region notably Indonesia and Vietnam.

The Highlight of SHREIT focuses on independent professional management of the hotel properties in order to seek maximum returns for investors. These hotel properties all carry strong growth potentials because they cater to specific target groups including tourists, businessmen and domestic consumers at a time when the domestic economy and tourism industries in the region are booming.

Mr. James Lim, Executive Director of SPI, disclosed that the company is an Independent REIT Manager which is managed by professionals with extensive experience and direct expertise in the management of hotel properties and also enjoy the backing of a global network. He stated that SPI has an independent investment policy which enables it to invest in any suitable properties from any sellers. "These positive factors allow us to create greater value for the investment trust by adding new properties in the future in order to generate maximum returns for the investors," Mr. James Lim said.

He added that "the good thing about being an independent REIT manager is that we can manage professionally with full efficiency which helps us to maximize full benefits from the properties that we invest in. We also have full options to acquire new properties and thereby generating maximum returns for investors".

Mr. Chanond Ruangkritya, Director and Major Shareholder of SPI, stated that he is interested in asset management and the management of Real Estate Investment Trust (REIT) because the business can generate consistent revenue. He added that the company's outstanding feature is to invest in overseas properties and has aimed to raise the assets under management (AUM) consistently.

Mr. Artapong Porndhiti, Executive Vice President, Investment Banking 2, Siam Commercial Bank, in his capacity as financial advisor stated that SHREIT is managed by an independent REIT manager which is a new management model for Thailand but it is widely practised in Singapore. This management model creates flexibility to invest in additional new properties and therefore the REIT can continue to grow consistently.

He said the properties that SHREIT is investing in are quality hotels located in important economic zones which have high growth rates and strong economic fundamentals that will support the property's performance. Moreover, SHREIT presents a good opportunity for Thai investors to invest in foreign hotel properties to diversify risks as against REIT investment in hotel properties at present which are limited to Thai properties only.

Ms. Veena Lertnimitr, Executive Vice President, Primary Distribution, Siam Commercial Bank, in her capacity as Financial Advisor and Underwriter stated that the total outlay of SHREIT will not exceed 5,420 million Baht which will include the subscription of Trust units with combined value of no more than 3,740 million Baht plus another 1,680 million Baht in borrowings from financial institutions. She stated that the estimated returns are in the range of 7.67% - 7.72% annually as disclosed in the prospectus. The subscription will be offered to business partners, parties related to the REIT manager, institutional investors, Foreign Initial Purchasers, patrons of the underwriters as well as general investors. She is confident that SHREIT will be positively received by the investors because of the strong fundamentals of the three hotel properties.


Latest Press Release

CIMB THAI posts THB 537.4 million net profit for 9M2018

Mr. Kittiphun Anutarasoti, President and Chief Executive Officer of CIMB Thai Bank PCL, stated that according to the unreviewed consolidated financial results for the nine months ended 30 September 2018, CIMB Thai group recorded a consolidated net profit...

Bangkok Bank encourages customers to use digital banking instead of branch counters while increasing the efficiency of its CDMs to enable bill payments, top ups and cash change

Bangkok Bank invites customers to use digital channels for transactions to reduce the amount of transactions at their branches in order to save costs and capture new customers. The bank has recently kicked off its project to increase the efficiency of...

TMB strengthens its leading position in mutual fund service by partnering with Eastspring.

TMB strengthens its leading position in mutual fund service by partnering with Eastspring. With THB12 bn gain from TMBAM deal, pre-provision operating profit for the 9 months rose 76% to THB26,360 million. The Bank also set higher provision in...

KASIKORNBANK announces the nine-month period of 2018 net profit of Baht 31,426 Million

Mr. Pipit Aneaknithi, President of KASIKORNBANK, said KASIKORNBANK announced net profit for the nine-month period of 2018, KBank and its subsidiaries reported net profit of Baht 31,426 Million, an increase of Baht 2,795 Million or 9.76% over the same...

World Bank Group launches new multi-donor fund in support of SDG implementation

WASHINGTON, Oct. 18, 2018 - Today, the World Bank Group launched the Partnership Fund for the Sustainable Development Goals (SDG Fund) in support of global efforts to meet the SDGs. The aim of the multi-donor SDG Fund is to incentivize catalytic...

Related Topics