The Securities and Exchange Commission has approved Ticon Management's proposal to manage the first real estate investment trust (REIT) worth Bt4 billion to Bt5 billion to be launched next quarter, Virapan Pulges, managing director of Ticon Industrial Co
The SEC had recognised the company’s management and personnel capabilities and 20 years of experience in the real-estate industry, he said.
Amorn Chulalaksananukul, managing director of Ticon Management, said TMAN would manage both local and overseas investments and revenue from lease and service fees for the REIT, with the right to set up other funds in the future.
The first deal for which TMAN will seek the SEC’s approval pertains to investment in hotels and warehouses for lease belonging to Ticon Group, which has an approximate combined worth between Bt4 billion and Bt5 billion. Bualuang Securities is the trustee.
TMAN expects the fund to be available to investors next quarter.
Krungsri Securities plans to revise down this year’s profit projection for Ticon Industrial Connection by 3 per cent in anticipation of the sale of the lease area, which has a minimum worth of Bt5 billion, to this new REIT.
Krungsri Securities expects Ticon Industrial Connection’s operating results to remain about the same as last year’s.
Based on new information received from Ticon’s management, Krungsri Securities plans to revise down its estimate of TMAN’s net profit for this year by 15 per cent to Bt1.16 billion, as the value of the assets sale to the REIT this October is expected to fall to Bt4 billion.
Krungsri Securities will also revise its Ticon stocks recommendation from “buy” to “hold” in view of the added risk related to the projected downgrading of the value of the assets to be sold, which is expected to be less than the initial estimated value, coupled with the stock price being near the positive value.