TICON FREEHOLD and Leasehold Real Estate Investment Trust (TREIT) is set to become Thailand's largest REIT with total assets of Bt36 billion, Peerapat Srisukont, managing director of TICON Management Co Ltd (TMAN) as the REIT manager of TREIT said.
He added that TMAN has submitted the filing to the Office of the Securities and Exchange Commission on October 20, 2017, to increase TREIT's capital. After the conversion, TREIT will possess assets worth more than Bt32 billion, which will gain more benefits from high leverage, and attract more investment from both domestic and foreign investors.
The conversion will also improve risk diversification of asset types, locations and industries as well as stabilisation of income from the less concentration of large tenants. TREIT will possess factories and warehouses in 22 locations across 7 provinces, all of which are situated in strategic locations of the country's economic and industrial centers.
The conversion will also increase efficiency and flexibility of management by a single REIT manager. Moreover, TREIT is qualified to leverage up to 60 per cent of the total assets as the trusts has Investment Grade credit rating, which will also provide opportunities to further acquire more properties in order to increase returns for investors. Currently, there are numerous assets located in the Eastern Economic Corridor (EEC) and adjacent area of over 1.09 million square meters, attracting massive investments from both investors and entrepreneurs.
TREIT unitholders have approved the plan for an additional investment after the conversion. TREIT intends to exercise its right to additionally invest in TICON group's properties – after the conversion – of not less than Bt3.5 billion by additional leverage to acquire additional assets, which will make TREIT to become the biggest REIT in Thailand with total assets of over Bt36 billion.