Several Thailand property funds that sought listing approvals from the Securities and Exchange Commission (SEC) before the deadline at the end of last year may still not be able to go public this year, according to media reports.
Some funds are still being considered, which could take time as the SEC needs additional information or clarification. This may mean some funds may not be approved for listing this year, said Thawatchai Pittayasophon, Director of the SEC’s corporate affairs department.
The SEC previously allowed only type 1 property funds that applied before the deadline to launch initial public offerings (IPO) as property funds, while those that applied to go public with the SEC this year must offer real estate investment trusts (REITs).
REITs’ features are similar to property funds, but they have more flexibility in borrowing. A type 1 property fund mobilises capital from the public.
A total of five property funds with combined assets of THB43.1 billion gained SEC approval to sell to the public. These include the largest property fund IPO, the Thai Hotel Investment Property Fund, which raised more than THB20 billion alone.
Thawatchai confirmed: “The SEC does not intend to slow down property funds’ IPO approvals, influencing them to offer REITs instead, but SEC officials must carefully consider all the details in a filing.”
Andrew Batt, International Group Editor of PropertyGuru Group wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
