Thailand gets first REIT

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Impact2The Thai capital market expects its first ever real estate investment trust (REIT) in the 4th quarter 2013, issued by Impact Exhibition Management, the company that manages Bangkok’s largest exhibition center,

Imapct, a unit of  SET-listed Bangkok Land Plc, said the REIT will have a volume of 20 billion baht ($640 million) and will be issued to finance its second phase expansion of the exhibition area in northern Bangkok.

After approval by the Securities and Exchange Commission (SEC) of the Stock Exchange of Thailand, the price will be set. Bangkok Land wants to maintain a 50 per cent stake in the fund for at least five years.

The issuance comes after the SEC changed regulations for trusts and fund listings earlier this year, with the first new such listing having been the $1.2 billion BTS Rail Mass Transit Growth Infrastructure Fund, the country’s first infrastructure fund, which went public in April.

Impact said half of the proceeds of the fund, or 10 billion baht, will be part of the investment to build the Impact II project with a new exhibition and convention center, hotel, condominiums and shopping mall. Construction is expected to take 18-24 months.

It added that the corporate tax waiver of a REIT allows the fund to pay a satisfactory dividend to stakeholders.

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The Thai capital market expects its first ever real estate investment trust (REIT) in the 4th quarter 2013, issued by Impact Exhibition Management, the company that manages Bangkok's largest exhibition center, Imapct, a unit of  SET-listed Bangkok Land Plc, said the REIT will have a volume of 20 billion baht ($640 million) and will be issued to finance its second phase expansion of the exhibition area in northern Bangkok. After approval by the Securities and Exchange Commission (SEC) of the Stock Exchange of Thailand, the price will be set. Bangkok Land wants to maintain a 50 per cent stake in...

Reading Time: 1 minute

Impact2The Thai capital market expects its first ever real estate investment trust (REIT) in the 4th quarter 2013, issued by Impact Exhibition Management, the company that manages Bangkok’s largest exhibition center,

Imapct, a unit of  SET-listed Bangkok Land Plc, said the REIT will have a volume of 20 billion baht ($640 million) and will be issued to finance its second phase expansion of the exhibition area in northern Bangkok.

After approval by the Securities and Exchange Commission (SEC) of the Stock Exchange of Thailand, the price will be set. Bangkok Land wants to maintain a 50 per cent stake in the fund for at least five years.

The issuance comes after the SEC changed regulations for trusts and fund listings earlier this year, with the first new such listing having been the $1.2 billion BTS Rail Mass Transit Growth Infrastructure Fund, the country’s first infrastructure fund, which went public in April.

Impact said half of the proceeds of the fund, or 10 billion baht, will be part of the investment to build the Impact II project with a new exhibition and convention center, hotel, condominiums and shopping mall. Construction is expected to take 18-24 months.

It added that the corporate tax waiver of a REIT allows the fund to pay a satisfactory dividend to stakeholders.

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