SHREIT aims to raise up to Bt3.7 bn for hotel investments

Corporate December 08, 2017 01:00

The Strategic Property Investors Co Ltd (SPI) has launched The Strategic Hospitality Extendable Freehold and Leasehold Real Estate Investment Trust (SHREIT) to raise up to Bt3.740 billion to invest in renewable rights to operate and lease three hotels in Indonesia and Vietnam.



SHREIT focuses on independent professional management of hotel properties in order to seek maximum returns for investors. These hotel properties – ranging from three stars to five stars - carry strong growth potential because they cater to specific target groups including tourists, businessmen and domestic consumers at a time when the domestic economy and tourism industries in the region are booming, the company said.

James Lim, executive director of SPI, said the company is an independent REIT manager that is managed by professionals with extensive experience and direct expertise in the management of hotel properties and also enjoy the backing of a global network. 

He said the SPI has an independent investment policy which enables it to invest in any suitable properties from any sellers. 

Artapong Porndhiti, executive vice president, Investment Banking 2, Siam Commercial Bank, in his capacity as financial advisor, said the management model creates flexibility to invest in additional new properties and therefore the REIT can continue to grow consistently.

He said the properties that SHREIT is investing in are quality hotels located in important economic zones that have high growth rates and strong economic fundamentals that will support the property’s performance. Moreover, SHREIT presents a good opportunity for Thai investors to invest in foreign hotel properties to diversify risks.

 Veena Lertnimitr, executive vice president, primary distribution, Siam Commercial Bank, said the total outlay of SHREIT will not exceed Bt5.42 billion, which will include the subscription of trust units with a combined value of no more than Bt3.74 billion, plus another Bt1.68 billion in borrowings from financial institutions.

She said the estimated returns are in the range of 7.67 to 7.72 per cent annually as disclosed in the prospectus. The subscription will be offered to business partners, parties related to the REIT manager, institutional investors, foreign initial purchasers, patrons of the underwriters as well as general investors. She said she is confident that SHREIT will be positively received by the investors.

EXPANSION

Thonburi Healthcare looks ahead after share float

 Shares in Healthcare Group Public Co Ltd (THG) closed down 3.29 per cent from the offer price on their trading debut on the Stock Exchange of Thailand yesterday.

The stock ended the day at Bt36.75.

Dr Boon Vanasin, chairman of the THG board, said: “THG is now ready to pursue leadership among integrated healthcare providers by investing its capital in healthcare-related businesses both locally and internationally and converting its extensive medical know-how and expertise and more than four decades of experience into stable growth.”

Investment projects in Thailand include: Thonburi Rehabilitation Hospital in Bamrung Maung Road, which is expected to become operational in 2018 to serve rehabilitation and physical therapy patients; Jin Wellbeing County Project as a community of the elderly on approximately 140 rai in Rangsit area with an integrated healthcare centre, the first phase of which is expected to be completed in 2018-2019; and the expansion of Thonburi Hospital and Thonburi 2 Hospital.

The company is also increasing its overseas presence. It has acquired a majority stake (58 per cent) in a Chinese corporate vehicle running Welly Hospital in Weihai, China, which has become fully operational.

 In addition, it holds a 10 per cent stake in Aryu International Health Care Company Limited, a joint-venture firm established jointly with Ga Mone Pwint Company Limited, its Myanmar partner, and the management is in the process of increasing the investment proportion to 40 per cent. 

Ar Yu International Hospital is under construction in Yangon and expected to become operational in the second quarter of next year. These projects will increase the company’s revenue and growth opportunities in the future.

THG now has 17 network hospitals, and it is making more investments in healthcare-related businesses to expand both locally and internationally.

HAPPINESS PITCH

MQDC unveils plans for The Forestias project 

Real estate developer Magnolia Quality Development Corporation Limited (MQDC) yesterday unveiled The Forestias project, which what it calls a world-first integration of nature and community, under an “Imagine Happiness” concept. It has a project value of more than Bt90 billion. 

The project covers 300 rai at Bangna-Trad Road km 7. 

This mixed-use, multi-generational lifestyle project encompasses residential housing, retail buildings, office buildings, a health centre, an innovation centre, a forest pavilion, community space, a learning centre, and an extensive natural ecosystem. 

Construction begins in 2018 and is expected to be completed in 2022.