WHART to invest in additional real estate assets

WHA Group chief executive officer Jareeporn Jarukornsakul, the property manager for WHART, said the assets to be sold into the trust are WHA's premium built-to-suit warehouses & factories, complete with utilities-energy and digital infrastructures.

WHART CEO Narumol Tantayawit said that after the capital increase, the total assets of the trust will reach Bt38 billion.
It plans to offer the new trust units not exceeding 323.78 million units at an offering price not higher than Bt16.90/unit.
The sale of new trust units will be launched in this November and the acquisition of assets by the trust will be completed in December. 
WHA Group, as the sponsor and the property manager, has gradually injected its assets into WHART since the trust's initial public offering (IPO) in 2014.
Most of WHA Group's assets are premium built-to-suit warehouses and factories, with a complete range of infrastructure covering utilities, energy and digital technology.
Moreover, most of WHA Group's projects are strategically located in logistics areas of the country and in line with the development of Eastern Economic Corridor (EEC) supported by the government.
The additional projects include 3 freehold projects and 2 leasehold projects with a net leasable areas of 155,237 square meters.
Of the total net leasable areas, 90 per cent are located in the Bang Na-Trat zone and the remaining 10 per cent in the EEC. Additional space includes rooftop leasable areas of 71,482 sqm and parking areas of 2,983 sqm on land areas of 172 rai and 226.75 sq wah.
The projects include 1) the DTS factory in WHA Chonburi Industrial Estate in Tambon Borwin, Sri Racha district in Chon Buri, 2) the Roechling factory in WHA Eastern Seaboard Industrial Estate 1 in Tambon Khao Kansong, Sri Racha, 3) WHA Mega Logistics Centre (Chonharnpichit KM 3 Phase 1) in Tambon Bang Pla, Bang Phli district, Samut Prakan, 4) WHA Mega Logistics Centre (Chonharnpichit KM 3 Phase 2) also in Bang Pla, 5) WHA KPN Mega Logistics Centre(Bang Na-Trat KM23 Phase 2) in Bang Sao Thong district of Samut Prakan.
It is expected that the investment in additional assets will bring the total assets of WHART to more Bt38 billion, up from Bt33.214 billion, driving WHART into the top three in the REIT industry for warehouse, factory and distribution centres. This capital increase will also generate a steady return to the trust’s unit holders.
In the post transaction period, the proportion of freehold and leasehold assets of the trust will be maintained at 67 per cent and 33 per cent, mitigating the risks of declining asset values in the future.
The occupancy rate of the trust's assets will be maintained at 90 per cent with strong tenant profiles and financial status.
After WHART completely invests in these assets, the trust is expected to pay higher dividends to unit holders estimated at around Bt0.79 per unit, based on the reviewed pro forma by the auditor. This represents total distribution yield from both dividend and capital decrease of around 4.67 per cent, when calculated from the trust unit offering price not exceeding Bt16.90.
Raveeratana Satchavarodom, Head of Investment Banking Business Division from Kasikornbank, the financial advisor and the lead underwriter of WHART trust units, said existing WHART unitholders will be able to subscribe WHART new trust units from the fourth capital increase, which will come to a total not exceeding 323.78 million units at the offering price not exceeding Bt16.90 per trust unit between November 12 and 15, and again on November18, while the general public (based on the consideration of the lead underwriter) will have a chance to subscribe to the new trust units from November 19 to 22 and again on November 25. The transfer of assets will be completed by the end of 2019.