Mr. Peerapat Srisukont, Managing Director of TICON Management Co., Ltd. (TMAN) as the REIT manager of TREIT, revealed, "In line with the growth plan announced, TREIT consistently pursues investment opportunities in high-quality assets in Thailand and abroad, targeting at a continued growth of 2-3 billion baht in net asset value per annum. Most recently, TMAN's board has passed a resolution for TREIT's additional investment plan to acquire real estate assets from Star Micronics Precision (Thailand) Co., Ltd. (Star Micronics). Valued at 90 million Baht, this transaction will be paid up with TREIT's working capital. The ownership of properties involved is comprised of land with total area of 8 rai, 3 ngaan and 53 square wa and two ready-built factory buildings with a usable area of 8,976 square metres. These properties are located in Rojana Ayutthaya Industrial Park in Ban Chang Sub-district, Uthai District, Phra Nakhon Si Ayutthaya Province, one of Thailand's strategic locations for industrial operations. Moreover, Star Micronics as a seller will sign a 10-year leaseback agreement and continue to occupy the properties as a long-term tenant of TREIT"
Afterward the investment, TREIT's assets under management has increased to 516 units of factory and warehouse buildings, divided into 70% freehold and 30% leasehold properties. These high-quality properties are strategically located in key industrial regions of Thailand, such as Ayutthaya, Pathum Thani, Samut Prakan and the Eastern Economic Corridor (EEC). They were acquired complete with tenancies of world-class companies from various industries, including next-generation automobiles, logistics and electronics. As at the end of September 2018, the occupancy rate stood at 79.2%. On progress of another transaction involving acquisition of real estate assets worth 3.6 billion baht from TICON, the ownership transfer is currently underway with completion expected in December this year.
"As the REIT manager, we found this new investment worthy and foresaw its potential to contribute to overall growth of TREIT—an investment in high-quality properties in a promising location, coupled with advantages of a sale-and-leaseback deal with non-TICON partner for the first time, especially with a long leaseback period of ten years from October 1, 2018 to September 26, 2028. Looking forward, we are ready to drive further growth of TREIT, to boost its revenues and to ensure high and consistent yields to the unitholders. We expect TREIT's net asset value to reach 35 billion baht by the end of this year, an increase of 15% from the end of December 2017," Mr. Peerapat concluded.