BANGKOK: Asset World Corp Pcl’s new Thai real estate investment trust (REIT) aims to raise at least US$1bil through a listing as it seeks funds to expand its hotel and commercial property business, according to a senior executive.
The property arm of billionaire Charoen Sirivadhanabhakdi plans to put four hotels and an office building valued at about 48 billion baht (US$1.44bil) into the REIT, said Wallapa Traisorat, Asset World’s chief executive officer.
“The company expects foreign institutional investors to take up about half of the initial offering or IPO of the REIT, which is targeting a Thai listing in early 2027.
“We expect the new REIT to become an important funding vehicle for Asset World, helping us raise capital and strengthen our balance sheet,” Wallapa told reporters last Friday. “We plan to inject more assets into the REIT over time to help unlock their value,” she added.
Asset World is seeking to buck weak market conditions that have weighed on other offerings. Minor International Pcl, Thailand’s biggest hotel and restaurant operator, last month postponed plans for a roughly US$1bil REIT on concerns investors may demand higher yields.
“We made an initial survey of the market and there is strong interest in our REIT,” said Wallapa, adding that Asset World was confident in the quality of its assets.
The offering would let Asset World free up cash from mature properties and reinvest in new hotels, commercial projects and tourist attractions across Thailand. — Bloomberg
