IMPACT Growth REIT’ Sets to Launch up to THB 20 billion IPO of the Real Estate Investment Trust

Published : 2014-09-03

IMPACT Exhibition Management Co., Ltd. announces its readiness of the Initial Public Offering (IPO) of “IMPACT GROWTH REIT” – the first Real Estate Investment Trust (REIT) in Thailand. The REIT will acquire Freehold Assets of IMPACT Muang Thong Thani Project with the transaction size up to THB 20,000 million. Indicative IPO Subscription for general investors starts from 8 to 12 September 2014 with initial offering price ranges from THB 10.30-10.60 per unit. General investors can subscribe at THB 10.60 per unit. IMPACT GROWTH REIT is expected to mark its first trading day on the Stock Exchange of Thailand on October 1, 2014 having RMI Co.,Ltd. as the REIT Manager and Kasikorn Asset Management Co.,Ltd. (KAsset) as the Trustee.  Financial Advisor and Joint-Lead Arrangers of the offering are Maybank Kim Eng Securities (Thailand) Plc, KASIKORNBANK Plc and Kasikorn Securities Plc.

Mr Anant Kanjanapas, Chairman and Founder of Bangkok Land Plc or BLAND which is the parent company of IMPACT Exhibition Management Co., Ltd. (IMPACT), said: “Today we are delighted to unveil official announcement of ‘IMPACT Growth REIT’ , real estate investment trust to invest in freehold assets of IMPACT Muang Thong Thani Project which highlights strong potential of our leading exhibition & convention center with over 15 years of proven track record and continual development. At the presence, IMPACT holds 100% ownership of the assets in the Project including land and buildings under the management by team of professionals throughout the past years with zero debt obligation. I am confident that IMPACT Growth REIT unit holders will receive optimum benefit from continual growth of asset value each year as well.”

For the establishment of the REIT, IMPACT has appointed professionals with distinguished area of expertise to arrange the transaction including Maybank Kim Eng Securities (Thailand) Plc, KASIKORNBANK Plc and Kasikorn Securities Plc as Financial Advisor and Joint Lead Arrangers and KASIKORNBANK Plc as a trustee to create trust and enhance credibility among institutional and general investors.

A point worth mentioning is on return from “IMPACT GROWTH REIT” which may be considered as outstanding and serve as an alternative choice of investment for investors as it offers a chance to receive distribution that are relatively stable and can be passed on to the next generation due to its freehold feature. The REIT will pay out distribution to the trust holders at the rate of at least 90% of the net profit per year.

Mr Paul Kanjanapas, Managing Director of IMPACT Exhibition Management Co., Ltd. added “IMPACT Muang Thong Thani has solid and remarkable performance over the past years. Despite adverse effect from uncontrollable factors domestically and internationally, IMPACT management team has persistently strived to adapt management strategy to meet changing conditions which has resulted in satisfying target performance. Currently, IMPACT Muang Thong Thani Project has been widely regarded as the Largest Exhibition & Convention Center in ASEAN, serving more than 8,000 events from all over the world with complete facilities to accommodate the influx from the establishment of the ASEAN Economic Community (AEC) next year”.

Mr Teeranun Srihong, President of KASIKORNBANK, said “KBank, as the financial advisor and Joint Lead Arranger and Kasikorn Asset Management (KAsset) as the Trustee for “IMPACT Growth REIT”, are highly confident in the transaction and are certain that IMPACT GROWTH REIT will receive strong response from the investors as REIT has similar investment characteristics with Property Funds which are already widely known and understood among wide base of investors. In addition, this is a good opportunity for general public to own Thailand and ASEAN’s no.1 Exhibition & Convention Center which plays a significant role in driving the growth of Thai Economy and will soon become a major trade pillar for the upcoming AEC.

Real Estate Investment Trust with underlying value up to THB 20,000 million will acquire Freehold assets of IMPACT Muang Thong Thani Project including IMPACT Arena, IMPACT Exhibition Center, IMPACT Forum and IMPACT Forum given the debt portion of approximately 20 percent of total asset.

MrTeeranun added further that “Real Estate Investment Trust or REIT is a new investment alternative in Thailand which will eventually replace the so-called Property Funds. Concept of the REIT is to bundle the assets into the real estate investment trust, whilst structure of REIT has been liberalized from existing structure of the Property Fund into the ‘trust’ structure which allows more flexibility such as non-restriction on the type of real estate that the trust can invest, loosen regulatory constraints and requirement to adopt more liberal standards of governance which is believed to enhance Thailand’s capital market standard to match with well developed markets in other region such as Singapore, Hong Kong and Japan. Trust will be set up by using the proceed from the fund raising to acquire/rent the properties which makes the trust equivalent to the pool of assets with trust holders as the ultimate owners of those assets.  REIT Manager will manage and maximize benefit from the assets under trusts by renting out the assets or providing services while Trustee will monitor and ensure that the REIT Manager manages the trust in accordance with the trust deed. Net Profit generated by the Trust will be distributed as the ‘Distribution’ to unit holders. Regardless, main benefits from investment are still maintained, that is lower capital is required compared with direct investment in real estate which allows wider choice of real estate

investment to investors while investors can be confident to receive steady return under the management of professional property manager with high expertise.”

Mr Montree Sornpaisarn, CEO of Maybank Kim Eng Securities (Thailand) Plc, said “The Initial Public Offering of IMPACT GROWTH REIT will be made to both institutional investors and retail investors. IMPACT Exhibition Management Co., Ltd. will hold 50% of the total offering units.

General investors can subscribe for the units at Kasikorn Securities, Maybank Kim Eng Securities (Thailand), KASIKORNBANK, Bank of Ayudhya and CIMB Thai Bank during September 8-11, 2014 within hours of operations(9am-4pm) and September 12, 2014 from 9am to 12pm.The initial offering price ranges from THB 10.30 – 10.60 per unit. General subscribers are required to subscribe at THB 10.60 per unit with a minimum of 2,000 units and in multiples of 100 units. The final offering price depends on the book-building result which will be announced no later than 17 September 2014.

In case that the final offering price is lower than THB 10.60, subscribers will be refunded within 14 days.

Highlights of the assets that IMPACT Growth REIT will acquire can be summarized as follows:

• Largest Exhibition and Convention Center in South East Asia: with over122,165 sqm. Indoor venue space for exhibition and is able to accommodate a large number of visitors. As of March 31, 2014, IMPACT has captured the highest market shares in Thailand.
• Easily-accessed location with Large Catchment Area: located close to expressway and can be accessed from 5 main roads in Bangkok and Nonthaburi via public transport and/or private vehicles as well as a potential of pink-line sky train.
• Diverse Customers with Growing Occupancy Rate : Each asset serves 3 main groups of customers including Public Sector, Domestic Private Sector and International Private Sector. The combination of diverse base of customers reduces the reliability to each specific group of customer which is an opportunity to generate steady income supported by continual growth of occupancy rate every year
• Highly Experienced Property Manager: IMPACT as a Property Manager has over 15 years of experience in managing and operating IMPACT Exhibition & Convention Center. This ensures maximum benefit to the REIT given high capability and expertise of the team of professionals.
• Positive Growth Outlook from Growth of MICE Industry and Economic Growth in the Future: Meeting, Incentive, Convention, and Exhibition (MICE) has a tendency to grow continuously from economic expansion and the introduction of ASEAN Economic Community (AEC) which allows REIT to benefit from growth of number of customers.

In addition, investors will be able to take advantages from opportunities for future growth of the IMPACT GROWTH REIT from Rights of First Refusal (ROFR) from IMPACT investment in the exhibition & convention center-type assets including existing one and in the future as to raise a chance of an increase in total asset value overtime.

In conclusion, IMPACT Growth REIT is the answer for investors who focus on receiving stable returns and being able to accept investment risks close to dividend stock as well as having a chance to receive higher distribution from rising asset value in the future. Real Estate Investment Trust is also an alternative investment that diversify risk to the investors’ portfolio.

For further information please contact:-

IMPACT Exhibition Management Co., Ltd.
Jintana Phongpakdee        : Tel: 02 833 5061 and 081 640 0497

Inspire Communications Co. , Ltd. , PR Representative for IMPACT and BLAND

Nattawan Iamsittipol           : Tel : 02 305 8710 / 081 623 6560

KASIKORN BANK :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