Singha Estates 1st REIT to acquire leasehold rights in Suntowers office complex at bangkoks future prime transport hub

Real Estate Press Releases Monday November 19, 2018 10:23
Bangkok--19 Nov--MT Multimedia

Thailand's leading property developer Singha Estate Group is planning to launch SPRIME as a REIT with an initial investment in a 30-year leasehold Rights in Suntowers office complex, located at Bangkok's future transport hub.

MR. NARIS CHEYKLIN, CHIEF EXECUTIVE OFFICER OF SINGHA ESTATE PUBLIC COMPANY LIMITED, Thailand's leading property developer and investment firm, revealed that Singha Estate Group is gearing up for the inception of S Prime Growth Leasehold Real Estate Investment Trust (SPRIME) as its first real estate investment trust (REIT) that will allow the group to raise funds backed by its quality assets. He added that SPRIME's initial assets will include 30-year leasehold rights part of the land on which Suntowers office complex is situated and in conference, fitness, mechanical and electrical facilities, common areas and parking areas within the complex, as well as freehold interests in movables for the management of the complex, which will be acquired from Max Future, a Singha Estate subsidiary.

Built on a five-rai plot (approx. two acres), Suntowers office complex consists of Tower A (32 floors) and Tower B (40 floors and one basement floor), the foundations of which are connected to each other. SPRIME's building space will total 118,828 sq.m., including office space at 62,850 sq.m. (net) and conference space at 944 sq.m. Thanks to building renovation and maintenance, tenant loyalty has been won: as of 31 August 2018, the complex's occupancy ratio stood at 95.1%.

Suntowers office complex is a quality asset that Singha Estate Group acquired and took over from the original owner in August 2015. It lies close to Lat Phrao intersection, which is one of northern Bangkok's strategic locations due to presence of Mo Chit BTS skyrain station, Phahon Yothin MRT station, Chaloem Mahanakhon Expressway, Si Rat Expressway, Don Mueang Tollway, business and commercial establishments and residential properties, including brand-new condominiums along the BTS skytrain Green Line extension, as well as its proximity to major attractions, e.g. Chatuchak Park, Central Plaza Lat Phrao mall, Centara Grand Hotel, Don Mueang International Airport, and to Phahon Yothin Transportation Complex and Bang Sue Central Station (under construction). The area is becoming Bangkok's (and Thailand's) rail transport hub that provides efficient access to mass transit systems.

"We are launching SPRIME as our first REIT. Its initial investment will be in Suntowers, a quality office complex near Lat Phrao intersection, a strategic, high potential location with extensive infrastructure and property development activities that is being transformed into a core business district of Thailand. Such great location will drive the demand for office space there continuously higher in the long term", said he.

MR. EKKAPOB MAKEGULJAI, EXECUTIVE VICE PRESIDENT, GLOBAL MARKETINGS GROUP, KRUNGTHAI BANK PUBLIC COMPANY LIMITED, as Financial Adviser, commented that a filing and a draft prospectus have been submitted for review by the Securities Exchange Commission (SEC) and the initial offering process is pending SEC approval. He highlighted SPRIME's high quality and great location, as reflected in the excellent occupancy ratio.

S REIT Management has been nominated to serve as REIT manager, and Max Future, a Singha Estate company with experience in managing the group's office buildings, as manager of SPRIME's initial assets. These guarantee that the buildings will be managed professionally and the assets' performance will remain satisfactory, especially in terms of occupancy ratio and rental yields, thus offering the best returns to the unitholders.

Latest Press Release

Habitat Group wins Asia Pacific Property Awards 2019 2020

Thailand's leading property-for-investment developer, Habitat Group, were recently recognized at the 2019-2020 Asia Pacific Property Awards with the New Hotel Construction & Design Thailand award for its luxury low rise condominium "Wyndham Atlas...


A lot has changed since fax machines, and boxy cubicles were mainstays in offices around the world. Thanks to changes in work styles, technological advancements and space allocation as well as cultural shifts, the workplace has drastically transformed...

Index Living Mall to offer 10% price cut for every baht spent for any items in store during #Member Days Sale campaign

Ms.Kridchanok Patamasatayasonthi, Managing Director of Index Living Mall PCL,announced the relaunch of the company's 'Member Days sale' campaign, designed to strengthen customer loyalty and engagement among more than 1.2 million holders of its 'JOY...

The 24th GILF Kicks off to Offer Global Buyers a Feast with 6 Highlights This Autumn

Since the first exhibition in 1999, the China (Guzhen) International Lighting Fair (hereinafter GILF) has become a hub of lighting procurement in the lighting capital of China - Guzhen. The 24th GILF will be held October 22-26, 2019, illuminating the...

Dusit signs to manage deluxe hot springs resort in Wugongshan, Jiangxi Province

Dusit International, one of Thailand's leading hotel and property development companies with more than 70 years of international hospitality experience, has signed a hotel management agreement with Jiangxi Honglv Real Estate Company Limited to manage...

Related Topics