The Stock Exchange of Thailand (SET) will list Bangkok Airport Leasehold Real Estate Investment Trust, the first of its kind, on September 14, under the ticker symbol "BAREIT", amounting to THB 10.33 billion (approx. USD 280.70 million).
SET Senior Executive Vice President Manpong Senanarong said that BAREIT would list and start trading on SET in the Property & Construction industry group, Property Fund & REITs sector.
BAREIT offered 1.03 billion trust units to the general public during August 22 - 26, 2022; and Bangkok Airways group, institutional investors and ultra-high net worth investors during August 30 - September 1, 2022, at a price of THB 10 each. Bangkok REIT Management Co., Ltd. is the REIT manager, Kasikornbank pcl is its financial advisor and lead underwriter, and Kasikorn Asset Management Co., Ltd. is the trustee.
BAREIT invests in leasehold rights of land, buildings and attachment of some properties used in the operations of Samui Airport for a period of 25 years, and has subleased to Bangkok Airport Management Co., Ltd. which is a subsidiary of Bangkok Airways pcl with experience and expertise in airport development and management business, including airlines services under the name of Bangkok Airways. In addition, the Samui Airport has been in service for more than 33 years, with a strategic location on Koh Samui, an island off the east coast of Thailand & a world-class tourist destination, and it is an international airport that accommodates both domestic and international flights to facilitate foreign tourists.
Bangkok REIT Management Co., Ltd Managing Director Leelaphat Leelawanich said that BAREIT invests in assets with high growth potential as Koh Samui is one of Thailand's major tourist attractions. Samui Airport is therefore a gateway for tourists visiting Koh Samui and nearby islands, generating considerable income in line with the growth of the number of tourists. During the past 10 years (2010-2019), Samui Airport accommodated a total of over 2.6 million inbound/outbound tourists per year with a total of over 30,000 flights per year.
BAREIT will receive income from the sublease of assets to Bangkok Airport Management Co., Ltd., which is the airport manager. All these can ensure that such assets will be well managed, and will generate income from potential tenants, delivering consistent income over the period of 25 years, under the condition that the rent can be raised by approximately 2 percent each year. As for the first year, it is expected to pay a return of approximately 8.09 percent annually, which may be paid in the form of dividends or capital reductions. Significantly, BAREIT is considered as one of the trust funds in the market with attractive rate of return.
BAREIT has a policy of paying returns four times a year at a rate of not less than 90 percent of the adjusted net profit of the fiscal year, and in cases where the REIT manager deems appropriate, such as in the case of REIT's capital increase, BAREIT may be able to pay returns benefits to trust unitholders more than four times a year. BAREIT's three major trust unitholders after the IPO are 1) Bangkok Airways pcl (25.00 percent), 2) Bangkok Dusit Medical Services pcl (4.84 percent), and 3) TMB EASTSPRING Property and Infrastructure Income Plus Flexible Fund (3.27 percent).
Investors and interested parties please find more details of BAREIT's prospectus at the Securities and Exchange Commission's website at www.sec.or.th; and for general information of BAREIT, please visit www.bareit.co.th and www.set.or.th.