Mr. Amorn Chulaluksananukul, Managing Director of TICON Management Ltd. (TMAN) and Manager of TICON Real Estate Investment Trust (TREIT), revealed that the Securities and Exchange Commission (SEC) had approved TREIT’s filing for additional investment in TICON Group’s warehouses and factories from equity and debt capital Property Managers are remained under TICON Logistics Park Ltd. (TPARK) and TICON Industrial Connection Public Company Limited (TICON) of warehouse and factory, respectively. The additional investment will be total 3,204.29 million baht.
The new capital will be raised via the new trust unit issuance to existing unitholders and public offering of 224.30 million unit trust, with 140.95 million units offered to existing unitholders at a ratio of 2.43 current units per 1 new unit from November 30 to December 4, 2015. The remaining 2,000 units will be offered to general investors during December 8-15, 2015 at 10 baht per unit. The remaining funds will be obtained via long-term loans totaling 961.29 million baht.
“This additional investment will enhance the total asset size of TREIT to 7,504 million baht, which makes the trust even more attractive to investors with tendency of TREIT for creating liquidity. In term of dividend policy, We also aim to pay dividend no less than two times per year at the level of 90% of the trust’s net profit after adjustment. Our estimate for 12-month distribution from first day of additional investment date is 7.79% - with 5.46% coming from net profit and 2.33% from capital reduction indicatively,” Mr. Amorn said.
“Further investment plan of 2016, TREIT will not only have an eye on TICON assets but also none TICON’s group. As a REIT driven by a proactive strategy, we continuously seek out new opportunities to invest in high-potential property assets in Thailand and elsewhere. On top of TREIT’s own development, we also persuade potential opportunities for new type of asset for new REIT set up and our focus at this front would be on assets in Thailand,” he added.
Mr. Virapan Pulges, Managing Director of TICON Industrial Connection PLC, noted that the target of TREIT’s investment comprises 53 units, spanning a total floor area of 155,182 square meters. This includes land ownership and leasing rights for 46 units of TPARK’s rental warehouses (133,282 square meters) and seven units of TICON’s rental factories (21,900 square meters). Warehouses account for 86% of the total leasable area among these target assets, while factories take up the remaining 14%. 47% of these assets is freehold, with the remaining of 53% as leasehold.
“TREIT’s strength lies in the possession of great quality of assets in 16 strategic locations. Each of these sites offer great logistical advantages in the form of access to main roads that connect to various regions across the country, and the assets themselves are of outstanding quality thanks to their relatively new condition. The facilities are designed to support various needs, such as warehouses that meet the requirements of modern warehouse management systems, while factories are built with optimal space utilization in mind. Furthermore, TREIT’s assets are leased by leading domestic and international customers with strong finances from many industrial sectors – including logistics and consumer goods,” said Mr. Virapan.
Mr. Prasert Deejongkit, SVP and Manager, Investment Banking Group, Bangkok Bank Public Company Limited, added: “As the financial advisor and underwriter, Bangkok Bank is confident that TREIT will success with positive reception from current unitholders as well as the general public. The trust is investing in high-potential assets managed by TICON, who possesses over 25 years of experience in developing rental factories, and TPARK, a leader in rental warehouse development. Both companies are equipped with the right expertise to achieve the trust’s goals and provide unitholders with optimal returns on their investment. Since its establishment on 12 December 2015, the trust has paid two rounds of dividends totaling 0.6859 baht per unit
