The company announces the success of the conversion of three property funds which making TREIT to become the biggest industrial REIT in Thailand
SEC approved the conversion of three property funds into TREIT, and SET will post SP sign for trading suspension of the investment units of TFUND, TLOGIS, and TGROWTH during December 15-27, 2017. The book closing date for swap its investment units will be on December 20, and D-day to trade 'TREIT' will be made on December 28.
Mr. Peerapat Srisukont, Managing Director of TICON Management Co., Ltd., (TMAN) as the REIT manager of TICON Freehold and Leasehold Real Estate Investment Trust (TREIT) revealed that on 12 December 2017, the Office of Securities and Exchange Commission (SEC) approved the conversion of TFUND, TLOGIS and TGROWTH into TREIT which is the biggest merger of property funds and REIT. The conversion is making TREIT become the largest industrial REIT in Thailand. As for SEC approval, BBL Asset Management Co.,Ltd. (BBLAM) and SCB Asset Management Co., Ltd. (SCBAM) will later notify dissolution plan for all three property funds - TFUND, TLOGIS and TGROWTH from The Stock Exchange of Thailand. Meanwhile, TREIT will issue up to 2,035,587,048 new trust units with a cash component of 3,740 million Baht to support the merger. It is considered that TREIT is the only one REIT in Thailand which successfully convert three property funds into a big single REIT - TREIT.
In this regard, BBL Asset Management Co.,Ltd. (BBLAM) - the management company of TFUND and TLOGIS together with SCB Asset Management Co., Ltd. (SCBAM) - the management company of TGROWTH have announced the closing date of unitholders registered book to determine the right to swap the investment units on 20 December 2017. Cash payment in the form of dividend and/or capital reduction will be made on 3 January 2018 for TFUND and TLOGIS's unitholders, and 4 January 2018 for TGROWTH's unitholders.
The Stock Exchange of Thailand (SET) will post SP sign for trading suspension of the investment units during 15-27 December 2017 to announce the delisting of its investment units and accepts listing of newly issued trust units of TREIT issued for the conversion as listed securities under named 'TREIT' in SET. It is expected to commence trading 'TREIT' on SET on 28 December 2017.
Mr. Peerapat said 'The management companies will announce the dissolution of property funds after the completion of the transferred of assets and liabilities of property funds into TREIT by year end. Later in 2018, TREIT intends to exercise its right to additionally invest in TICON group's properties - after the conversion - of not less than 3.5 billion baht by using additional leverage to acquire additional assets, which will make TREIT to become the biggest REIT in Thailand with total assets of more than 36 billion baht.
'We are confident that TREIT will attract more investors from both domestic and abroad after the completion of conversion since TREIT becomes larger size with more liquidity and well-diversified of assets and customers. 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. Currently, there are numerous assets located in the Eastern Economic Corridor (EEC) and adjacent area of over 1.09 million square meters which will benefit and attract a massive of manufacturers from both Thai and foreigner.' Mr. Peerapat concluded.
