“SRIPANWA” to Defer-Waive Rent Payment, Citing Covid-19 Pandemic

Charn Issara REIT Management Company Limited, as the REIT Manager of Sri Panwa Hospitality Real Estate Investment Trust (SRIPANWA), announced that the Company received the letter from Sri Panwa Management Company Limited (SPM) requesting SRIPANWA to consider assisting SPM by deferring rent payments of August to December 2020 for 6 months from the current due date of each instalment and waiving on the rent payment of June 2020 instalment. 

 

Due to the coronavirus disease pandemic crisis in foreign countries, especially the countries that share border with Thailand, which spread rapidly and continuously, without having any tendency on the decrease of the number of infected persons. Therefore, it is necessary for the government to impose measures for controlling and preventing the spread of COVID-19. 

 

For example, the extension to the state emergency nationwide through 31 October 2020, the strict measure in relation to the visa issuance for the foreigners who would like to visit Thailand, or the social distancing policy in order to reduce the contact between people, and etc. As a result, the whole leisure and hospitality industry in Thailand has been severely affected and the hotel occupancy rate has been materially affected. 

 

Though SPM has used all endeavors to maintain the situation, such as the sale promotion which aims to encourage people to travel in Thailand, the reduction of unnecessary cost. But the occupancy of the domestic tourist has been limited to only Saturday-Sunday and Public Holiday.

 

Consequently, SPM has no sources to generate sufficient income to make rent payments. In addition, it directly affects the performance in order to make punctual rent payments to SRIPANWA. However, during the process of consideration of SRIPANWA, SPM shall commence to pay rent payment of February 2020 instalments in accordance with the timeline approved by the REIT Manager and trustee per the aforementioned details.

 

In this regard, the REIT Manager and the Trustee are considering the details in such rent payment deferral request and the rent waiver request in accordance with the aforementioned reasons and necessity, including the recovery plan for the purpose of making rent payments to SRIPANWA, within the framework of the relevant agreements, primarily taking into account the benefits of the trust unitholders. The Company will further inform the result of the consideration and other relevant proceedings without delay.

 

In addition, the REIT Manager on July 17, 2020 has approved SPM requesting SRIPANWA to defer rent payments of February, March, June and July 2020 instalments for 6 months from the current due date of each instalment, and waiving rent payments of April and May 2020 instalments.