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 a meeting of unitholders of TICON Property Fund (TFUND), TPARK Logistic Property Fund (TLOGIS), TICON Industrial Growth Leasehold Property Fund (TGROWTH) and TREIT on October 18-19, 2017, overwhelmingly approved the conversion of the three property funds into TREIT with over 70% attendee in each session, whereby TREIT will accept the transfers of assets and liabilities of TFUND, TLOGIS and TGROWTH in exchange for TREIT trust units plus cash as approved by the first extraordinary meeting held this year.
Mr. Peerapat said 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 32 billion baht, 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 stabilization 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 single REIT manager. Moreover, TREIT is qualified to leverage up to 60% 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 which attracts a massive of investment from both Thai and foreigner investors and entrepreneur.
Furthermore, TREIT unitholders 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 3.5 billion baht by 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 would like to thank all of unitholders for your trust and support for the opportunity allowing us to make this conversion possible. The company is confident that we will manage TREIT with its full efforts and efficiency in order to enhance the return to TREIT’s unitholders in the future.” Mr. Peerapat concluded.
