Real estate IPO in Thailand could raise $600m

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propert bangkokThailand’s largest home builder by market capitalisation, Land & Houses PCL, is mulling the listing of some of its real-estate assets at the Stock Exchange of Thailand in order to raise around $600 million, the Wall Street Journal reported.

The IPO could take place in the form of a property trust, in the fourth quarter of 2013.

Trusts generally appeal to funds and investors that seek yields and assured returns. According to Thai rules, the listed trust operator must pay at least 90 per cent of its adjusted net profit as a dividend to its unit holders.

However, Land & Houses still needs to apply for listing approval which is reportedly planned by the end of August.

The Thai stock market in tandem with its peers in Malaysia, Indonesia and the Philippines has fallen over the past weeks over investors’ concern about weakening economies in ASEAN and, moreover, about fears that the US Federal Reserve will start tapering its massive bond-buying programme.

But analysts say there is still enough domestic liquidity in Thailand for offerings such as that of Land & Houses.

Land & Houses is 23.76 per cent owned by Thai billionaire Anant Asavabhokhin, and Singapore’s sovereign wealth fund GIC owns a 16.13 per cent stake. It primarily develops residential urban housing throughout Thailand, concentrating on single detached houses. It also owns the Terminal 21 shopping mall including a hotel and serviced apartments in central Bangkok.

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Reading Time: 1 minute

Thailand’s largest home builder by market capitalisation, Land & Houses PCL, is mulling the listing of some of its real-estate assets at the Stock Exchange of Thailand in order to raise around $600 million, the Wall Street Journal reported.

Reading Time: 1 minute

propert bangkokThailand’s largest home builder by market capitalisation, Land & Houses PCL, is mulling the listing of some of its real-estate assets at the Stock Exchange of Thailand in order to raise around $600 million, the Wall Street Journal reported.

The IPO could take place in the form of a property trust, in the fourth quarter of 2013.

Trusts generally appeal to funds and investors that seek yields and assured returns. According to Thai rules, the listed trust operator must pay at least 90 per cent of its adjusted net profit as a dividend to its unit holders.

However, Land & Houses still needs to apply for listing approval which is reportedly planned by the end of August.

The Thai stock market in tandem with its peers in Malaysia, Indonesia and the Philippines has fallen over the past weeks over investors’ concern about weakening economies in ASEAN and, moreover, about fears that the US Federal Reserve will start tapering its massive bond-buying programme.

But analysts say there is still enough domestic liquidity in Thailand for offerings such as that of Land & Houses.

Land & Houses is 23.76 per cent owned by Thai billionaire Anant Asavabhokhin, and Singapore’s sovereign wealth fund GIC owns a 16.13 per cent stake. It primarily develops residential urban housing throughout Thailand, concentrating on single detached houses. It also owns the Terminal 21 shopping mall including a hotel and serviced apartments in central Bangkok.

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