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- Published: Monday, 07 November 2016 17:05
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SEC starts the day one count for the filing of Sri panwa Hospitality Real Estate Investment Trust, Thailand’s 1st REIT to be Converted from Property Fund
SEC starts the day one count of the filing for the offering of up to 336,473,000 trust units in Sri panwa Hospitality Real Estate Investment Trust (SRIPANWA), the first REIT to be converted from a property fund. SRIPANWA plans to acquire assets invested by Sri panwa Hotel Property Fund (SPWPF) and new assets, including luxurious hotel and a resort home in superb locations, which have revenue growth potential from the growing number of high-end tourists in Phuket. The book closing date for eligible subscribers will be 14 Nov 2016.
Ms. Veena Lertnimitr, Executive Vice President for Primary Distribution, The Siam Commercial Bank Public Company Limited, as the Financial Advisor and the Lead Underwriter, revealed that the filing for Sri panwa Hospitality Real Estate Investment Trust or SRIPANWA, for the REIT conversion of Sri panwa Hotel Property Fund (SPWPF) to Sri panwa Hospitality Real Estate Investment Trust (SRIPANWA), has been submitted to the Securities and Exchange Commission of Thailand or the SEC, and recently gave the count day one status of the filing.
The proposed offering will mark a major milestone for Thailand’s capital market development, as SRIPANWA will be the first REIT to be converted from a property fund. The purpose of the conversion is to offer SPWPF’s unitholders the opportunity to invest in new assets and to enjoy growth in terms of assets, investment returns and liquidity. In addition, the management structure of the REIT is more internationally accepted and REITs also have a more flexible capital structure due to their higher leverage ratio allowed.
SRIPANWA will offer up to 336,473,000 trust units, which will include i) 200,183,000 trust units to finance the acquisition of the assets currently invested by SPWPF, via the transfer of assets and liabilities from SPWPF, with a swap ratio of 1:1, and ii) up to 136,290,000 trust units for (1) SPWPF investors whose names are on the book closing date as of 14 Nov 2016, and (2) Sponsor for the new assets and its connected persons, Sponsor’s patrons and its connected persons, institutional investors and Underwriter’s patrons.
SPWPF’s unitholders who would like to subscribe for SRIPANWA trust units have to be SPWPF’s unitholders who holds SPWPF units as of 8 Nov 2016 (one day before the XB date of 9 Nov 2016), which is the last day to be eligible for the subscription of SRIPANWA with the book closing date of 14 Nov 2016.
The Financial Advisor and the Lead Underwriter added that SRIPANWA will invest in the initial assets invested by SPWPF which is the Hotel Phase I of 45 units, consisting of 38 luxurious Pool Villas, each with their own swimming pool and 7 luxurious Pool Suite East units, on a land plot with total area of 21 rai, 2 ngan and 55 square-wah (approximately 8.5 acres) in Wichit Subdistrict, Muang Phuket District, Phuket Province.
At the same time, SRIPANWA will also invest in new assets which include i) the Hotel Phase II, consisting of 30 rooms in the two buildings of the Habita, with a soft opening of which took place in January 2016; and ii) resort home X29, a three-level resort home, on a plot with total area of 6 rai 0 ngan and 50.6 square-wah (approximately 2.4 acres) in Wichit Subdistrict, Muang Phuket District, Phuket Province.
Mr Songkran Issara, Chief Executive Officer, Charn Issara Development PCL, the owner of the new assets and the parent company of Charn Issara REIT Management Co. Ltd., which will become the settlor and the REIT Manager of SRIPANWA, noted that both the initial asset and the new assets feature great locations and reputations for excellent service under sound management by the executives who are highly competent and experienced in hotel management. He added that the target customers for the new assets are tourists with less spending power when compared to those choosing to stay at the initial asset. The room sizes for the new assets are smaller, and the average room rates are lower and hence the Pool Suite and Penthouse units for the new assets attract customers who previously did not have a chance to stay at initial asset due to the relatively high price or when the Pool Suite East units are fully booked (e.g. during weddings).
Distributed by MT Multimedia Co., Ltd. (for SRIPANWA)
For more details, contact: Orn-anong (“Fah”) Pattaravejkul
Tel: 0 2612 0281 #129 Mob: 08 6884 4458 Email: [email protected]
