SHREIT IN MARKET DEBUT
The Stock Exchange of Thailand (SET) will list Strategic Hospitality Extendable Freehold and Leasehold Real Estate Investment Trust, under the ticker symbol SHREIT, in a flotation worth Bt3.53 billion today.
SHREIT is a real estate investment trust (REIT), investing in Strategic Hospitality Holding Limited (BVI), a holding company with underlying assets in the form of extendable freehold and/or leasehold rights of three hotels in the Asean region.
SET senior executive vice president Santi Kiranand said that SHREIT offered a total of 352.8 million units at Bt10 per unit to underwriter's benefactors and general public from December 13-15; and to business partners, trust managers, parties related to the trust manager, institutional investors and initial purchasers from December 18-19. SHREIT is managed by Strategic Property Investors Co Ltd. Its trustee is Krung Thai Asset Management pcl, while having Siam Commercial Bank pcl as its underwriter.
SHREIT is managed by professional and independent trust managers with extensive experience and expertise in hotel properties. Therefore, it is advantageous in the flexibility in setting investment policy aiming to generate highest return, the company said.
SHREIT managing director James Lim said that in the initial investment the fund raised would be used to invest in a 100 per cent stake in BVI. BVI will then indirectly invest in foreign holding companies to take 100 per cent ownership in firms that own freehold and/ or leasehold rights of three hotels: Pullman Jakarta Central Park in Indonesia, Capri by Fraser and IBIS Saigon South in Vietnam. Currently these three to five-star hotels have a total number of 632 rooms in service and are managed by professional management teams with growth potential from economic, commercial, investment, and travel industry expansion.
SHREIT’s dividend policy is to pay at least four times a year at no less than 90 per cent of the adjusted net profit of its financial year.
