FTREIT Seeks Approval to Acquire ฿6Bn of High-Potential Assets to Drive Value over ฿45Bn!

•  FTREIT pursues the unitholders’ approval for acquiring high-potential assets in strategic locations for industrial and logistics sectors in Ayutthaya, Pathumthani, Samutprakan, and EEC from Frasers Property Thailand and Chaiyanan-Bangplee Parkland, a non-group entity. The estimated investment is worth approximately THB 6,000 million.
• The investment is allocated for 23 factory units and 42 warehouse units. The total net leasable area is for 284,609 sqm with an approximate land area of 405 rai. After the acquisition, FTREIT will boost its portfolio value over THB 45,000 million.
• The proposed investment in these potential assets will diversify and strengthen FTREIT’s portfolio by generating streams of income. Growing returns are expected for unitholders.

 

Frasers Property Industrial REIT Management (Thailand) Company Limited or “FTREIT”, as the REIT Manager of Frasers Property Thailand Industrial Freehold & Leasehold REIT or “FTREIT”, makes great strides towards its performance in 2H FY2020 by allocating a budget of approximately THB 6,000 million to acquire high-potential assets located in strategic locations for industrial and logistics sectors.

The additional investment assets are from Frasers Property Thailand Public Company Limited (FPT) and Chaiyanan-Bangplee Parkland Company Limited (CBP), a non-group entity. The investments in the assets by the two companies are worth THB 3,879 million and THB 2,062 million respectively. These include registration fees and related expenses on the acquisitions. The total assets comprise 23 factory units and 42 warehouse units with a total leasable area of 284,609 sqm on 405 rai of land.

 

The assets to be acquired from FPT comprise 23 factory units and 33 warehouse units, representing a total area of 159,975 sqm located in Chonburi, Rayong, Ayutthaya, and Pathumthani province. The assets to be acquired from CBP comprise 9 warehouse units on a land lease with a remaining tenor of 19 years, the total area of 124,634 sqm located in Bangplee, Samutprakan province.

 

The investment highlights are as follows:

1) The assets are located in strategic locations for industrial and logistics sectors. It is surrounded by mega-infrastructure investment projects supporting growing demands for warehouses and factories.

2) By acquiring the new assets, FTREIT will diversify its revenue base across a variety of tenants ranging from industry to nationality. The assets in Bangplee to be added to FTREIT’s portfolio will serve the growing demand for warehouses in the e-commerce and logistics sectors, and will benefit FTREIT with a continuously growing rental rate.

3) The investment will strengthen FTREIT’s position as Thailand’s largest industrial REIT with the largest leasable area and asset value.

4) It is expected that FTREIT’s unitholders will gain more returns from this investment.

After the acquisition, FTREIT will increase its assets under management from 578 units to 643 units, resulting in a growing leasable area from 1.8 million sqm to 2 million sqm. The occupancy rate will increase from 82% to about 84%. The weighted average lease expiry will also increase from 2.2 years to 2.3 years. The total asset value under management will also increase from THB 39,000 million to THB 45,000 million.

The board of directors of FTREIT has passed the resolutions to hold the Extraordinary General Meeting of Trust Unitholders No.1/2020 to approve the acquisition of the additional investment assets. The meeting will be held on 11 August 2020, at 2 pm at Samyan Mitrtown Hall, 5th Floor, Samyan Mitrtown.

Mr. Peerapat Srisukont, Managing Director of FTREIT, said, “The significant investment will strengthen FTREIT’s portfolio by increasing its asset value under management over THB 45,000 million. FTREIT has been receiving overwhelming interest from investors given FTREIT’s continuously robust performance. FTREIT also enjoys a rating of “A” (Stable Outlook) by TRIS Rating, which underscores the confidence that the unitholders and debenture holders have in the REIT’s prospects.”