Thailand’s Golden Ventures REIT aims to raise 10 billion baht ($283 million; €258 million) to invest in the leasehold rights of two Grade A office buildings in Bangkok’s prime area. The REIT was set up by Univentures and Golden Land, two of Thailand’s major property developers.
The REIT is seeking 8 billion baht from an equity offering and 2 billion baht from bank financing, according to Urasate Navanugraha, managing director of the REIT. For the equity, the offering price is set at 10 baht per unit with a minimum investment of 20,000 baht. The offering is limited to clients or potential clients of KasikornBank, its sole underwriter, and selling agent. The subscription period will run from March 14 to 18.
The loan is under negotiation with a few banks but the term is set to be five years. Further details have not been disclosed at this stage.
“Both buildings are excellent in rental performance. Their premier locations, plus distinctive building designs, have made them continuously appealing among leading local and multinational corporations,” said Navanugraha.
“This allows the developers to obtain above-average rental rates for office buildings in Thailand, reflecting the strong potential of the projects to be able to generate stable growth of rental returns in the future.”
The REIT will invest in a 25-year leasehold of Park Ventures Ecoplex (excluding the Okura Prestige Bangkok) and a 24-year leasehold of Sathorn Square’s land and building. The two buildings have a near 100 percent occupancy rate in total rental space of 100,000 square meters. Their average rental rate is 907 baht and 745 baht per square meter per month respectively.
This would be the first investment by the Golden Ventures REIT. Univentures focuses on rental services for office buildings located in potential growth areas. It holds 55 percent of Golden Land’s shares.