IMPACT appoints KASIKORNBANK and Maybank KIM ENG to manage first ever REIT in Thailand to raise some Bt20 billion

Published : 2013-08-15

IMPACT appoints KASIKORNBANK and Maybank KIM ENG to manage first ever REIT in Thailand to raise some Bt20 billion

IMPACT launches the first REIT (Real Estate Investment Trust) in Thailand with the total amount of Baht 20 billion by appointing KASIKORNBANK and Maybank Kim Eng Securities as an advisor and distributor. REIT will be offered to investors in the 4th quarter of this year. The money will be used to support the further development of IMPACT Exhibition and Convention Centre.

MrAnantKanjanapas, Chairman of Bangkok Land, owner of IMPACT Exhibition Management Co.,Ltd said “We are proud to be the first company in Thailand to issue a REIT which clearly offers excellent returns and benefits to all shareholders and our company alike”.

“Benefits of the REIT are many including the fact that no corporate tax is due and payable, we can  also enjoy a tax holiday as no provision needs to be made for depreciation and after expenses  90% of the company’s taxable  income, is distributed to shareholders annually in the form of dividends.“MrAnant said.

“We have taken the REIT option as it means that Bangkok Land will still be in control of IMPACT by holding 50% of the company.  Year by year we continue to improve all our facilities and this year expect revenue of Bt 2.5 billion which is an outstanding return.“ MrAnant continued.

MrAnant said ‘I also feel proud that our Company is one, in Thailand today which owns outright all its land and buildings and is completely debt free.  As all our property at IMPACT is freehold we are able to ensure and enjoy the growth that inflation offers for both the value of land and buildings year on year”

“The issuance of the REIT will further enhance the long term vision of IMPACT and enable us to be the Pride of Thailand leading into the opening up of the ASEAN Economic Community (AEC)” MrAnant added.

“This is a WIN WIN situation. IMPACT is a great company with a unparalleled and ongoing future”  MrAnant concluded.

MrTeeranunSrihong, Managing Director, KASIKORNBANK, said “IMPACT has appointed KASIKORNBANK and Maybank Kim Eng Securities as the financial advisor and distributor and KASIKORNBANK Asset Management as the Trustee for IMPACT Growth REIT in limitation of Baht 20,000 million Baht which is the first REIT in Thailand.

IMPACT Growth REIT, is expected to be sold to both local and international institutional investorsand retail investors through KASIKORNBANK and Maybank Kim Eng Securities (Thailand) in 4th quarter of 2013.  The Banks are confident that the sales offering of IMPACT Growth REIT will receive excellent feedback from investors as this REIT is similar to investing in mutual funds which investors know and understand well.

MrTeeranun added “REIT is a new investment alternative in Thailand. The investment structure is similar to property funds. However, a REIT is a little different from a property fund as it is much more in line with international practice, for instance, no restriction on type of investment property, broad choices of investment and more flexible rules on investment which will enhance the style of the investment to other countries like Singapore, Hong Kong and Japan.  REIT will raise funds from investors to purchase / lease the property. When buying a property, it is the equivalent of a trust property. Trust unit holders who have paid the initial investment since the trust was set up mean the investor will own the assets by proportion of the trust units held.  The REIT Manager will manage and maximize benefit from the asset by renting or providing services. At least 90% of the REIT's taxable income has to be distributed to its shareholders through dividends according to the Securities and Exchange Commission (SEC).  REIT is the only type of public property fund currently available in Thailand. A REIT requires less capital outlay, but offers the same benefits as a direct real estate investment. It also offers broad choices of investment. Additionally, it ensures investors that they will earn investment returns under the management of experts.

The establishment of a REIT will not be complete without the REIT trustee. KASIKORNBANK Asset Management Co., Ltd. will act in that role. We are now in the application process to obtain the certificate from the Securities and Exchange Commission (SEC) MrTeeranum added.

MrMontreeSornpaisarn, CEO of Maybank Kim Eng Securities (Thailand) PLC, said that IMPACT Growth REIT is a freehold REIT using properties at IMPACT Muang Thong Thani as underlying assets, which includes IMPACT Arena, IMPACT Exhibition Center, IMPACT Forum and P2 parking building as well as IMPACT Challenger. Being the largest exhibition and convention center in Thailand and South East Asia, IMPACT has shown business stability and substantial income.

Once these properties have been invested in IMPACT Growth REIT, IMPACT Exhibition Management Co., Ltd., will perform its duty as the Property Manager and R.M.I. Co., Ltd., a wholly owned subsidiary of IMPACT Exhibition Management Co., Ltd., will be the REIT Manager.

The current investment market is very volatile, and depends on both domestic and international factors. A REIT is a new investment alternative in Thailand and a compelling investment option for both institutional and individual investors who want to aim for substantial capital gains and dividends. Additionally, it is a long-term inflation hedge. Thus, investing in IMPACT Growth REIT will provide long-term benefits of high yield for long-term investors. It is also an interesting investment alternative, particularly when the Stock Exchange of Thailand and international stock markets show high fluctuation due to the recessions in the US, Europe, China and other world’s leading economic countries.

For further information please contact:- IMPACT Exhibition Management Co., Ltd. Corporate Communications Department JintanaPhongpakdee Tel: 02 833 5061 and 081 640 0497 Kasikornbank Media Network Management Unit Corporate Communications and Relations Department       Tel: 02 470 2654- 8 Maybank Kim Eng Securities (Thailand) Plc. Investment Banking Department           Tel: 02 658 6300 ext 1713/1715