WHA Corporation has appointed Kasikornbank as the financial adviser and the underwriter for the listed warehouse company's real estate investment trust worth Bt4.7 billion, targeted for launch in the fourth quarter of this year.
Panop Ansusinha, KBank’s head of investment banking, said that in a period of stock-market volatility, REITs would be an interesting choice for institutional and individual investors who want to make capital gains and receive stable dividends. The return from investment in an REIT could be a hedge against inflation, providing good returns to long-term investors.
The bank expects WHA will make an initial public offering of its REIT in the fourth quarter, and believes the IPO will received a warm welcome from investors because the REIT model is similar to that of a property fund.
WHA chief executive Somyos Anantaprayoon said the REIT would be backed by rental revenue from its three warehouses and mega logistic centres in Bangkok’s Lat Krabang district and on Bang Na-Trat Highway.
The three assets have total rental space of 167,000 square metres, from which WHA aims to bring Bt3billion to Bt4 billion into the REIT every year.
He said WHA decided to transfer assets worth Bt4.7 billion to an REIT instead of the formerly planned WHA Premium Factory and Warehouse Freehold Property Fund (WHAPF) after the regulations on REITs became clearer and this option looked more attractive.
KBank will be both financial adviser and unit underwriter and Kasikorn Asset Management will be the trustee. WHA will be property manager for the REIT and a wholly owned subsidiary will be the REIT manager.