The Stock Exchange of Thailand (SET) will list KTBST Mixed Leasehold Real Estate Investment Trust on November 15 under the ticker symbol "KTBSTMR". It is the real estate investment trust that invests in three types of property development projects. It has a market capitalization at its initial public offering (IPO) of THB 3.02 billion (approx. USD 92.06 million) with an initial investment of THB 3.01 billion.
SET Senior Executive Vice President Manpong Senanarong said that KTBSTMR would list and start trading on SET in the Property & Construction industry group, Property Fund & REITs sector.
KTBSTMR has invested in the rights to lease and sub-lease land, buildings and components, categorized into three types of assets: 1) warehouses and factories, 2) office buildings, and 3) community malls consisting of five projects in Bangkok and two nearby provinces as follows:
The investment period is 30 years, with 65 percent of the investment in warehouses and factories.
KTBSTMR offered 301.5 million trust units to investors during } October 19 - 29, 2021, at THB 10 each, for a total of THB 3.02 billion. The raised fund will be initially invested in assets of not over THB 3.01 billion (without using loans). Kasikorn Asset Management Co., Ltd. is the trustee. Discover Management Co., Ltd. is the financial advisor, and KTBST Securities pcl is the lead underwriter.
Phonlasit Phumiwasana, Chief Executive Officer of KTBST REIT Management Co., Ltd. as the REIT manager, said that KTBSTMR's strength is the investment in various types of assets, and having an independent trust manager. It is the first mixed asset trust with an independent trust manager ever listed on SET. In addition, all these assets are in potential locations suitable for each particular business. The diverse locations can gain benefit and help minimize risks. Besides, in order to strengthen confidence among investors, KTBSTMR has initiated additional measures through the contracts requiring the assets owners to pay rents for any vacant space to the trust and compensate for the difference of the rents that are lower than their estimates in the first year of investment. The first year yield is estimated at the rate of 7.02 percent.
KTBSTMR's dividend policy is to pay no less than 90 percent of the adjusted net profit of the accounting period. The payment may exceed 4 times annually if there is a capital increase (with additional conditions). KTBSTMR's 3 major unitholders after the IPO are 1) ST Property & Logistics Co., Ltd. (19.90 percent), 2) STP & I pcl (8.15 percent), and 3) KTBST Securities pcl (4.98 percent).
For more information on KTBSTMR, please see its prospectus at the website of the Securities and Exchange Commission at www.sec.co.th. For general information, please visit www.ktbstmr.com and www.set.or.th.