A number of Thailand developers are in various stages of organizing real estate investment trusts (REIT) they hope to launch before the end of the decade. Golden Land, Pace and Charn Issara are among the developers planning REITs.
Sri Panwa Hotel Property Fund, which features the Sri Panwa hotel brand operated by Charn Issara, is close to becoming a REIT. Local media reported that should Thailand’s Security and Exchange Commission (SEC) approve the move, it would be the first time a first property fund is converted to a REIT in the country.
At the end of 2013, the SEC revealed that it would allow property funds to convert to REITs, but there has been little interest in the move to date. The benefits of a REIT versus a property fund include the ability to invest in overseas assets and improved borrowing power.
Golden Land Property Development is also looking to set up a REIT that would be comprised of some THB4.7 billion worth of assets including the FYI Center. The mixed-use development has been a hit and Golden Land believes it will be even more successful when the REIT launches in 2018.
“Currently, the office building has the occupancy rate at 70 percent. We expect to boost it to 90-95 percent before we launch the REIT in the next two years,” Somboon Wasinchutchawal, senior executive vice president for accounting and finance, told the Deal Street Asia.
While plans are still very fluid at this stage, Pace Development is also going ahead with plans to launch a REIT in the next few years. The developer, which recently completed its showpiece MahaNakhon project (imaged), will include a few assets from Thailand’s tallest tower as part of the REIT.
According to local media, these assets could include the Sky Observation Deck, the Bangkok Edition Hotel and the MahaNakhon Cube. All three projects are expected to be fully operational before the end of 2017.
