Thailand will see its first REIT this year
Thailand will see its first REIT this year
All eyes on the metamorphosis of the Sri Panwa Hotel Property Fund
Plans to create Thailand’s first real estate investment trust (REIT) may finally come to fruition this year.
Thai developer Charn Issara Development PCL is currently waiting for approval from the Securities and Exchange Commission to turn its Sri Panwa Hotel Property Fund into a REIT this year, DealStreetAsia reported.
“This is the first property fund in Thailand that is turned into the REIT,” said Charn Issara CEO Songkran Issara. “The transformation is necessary as we want to enable the fund to continue growing and investing in other assets.”
More: June to herald the beginning of Thailand REITs
To finance the transformation, Charn Issara will raise THB1.2 billion baht (USD34.3 million) from selling the second phase of its luxury Phuket resort Sri Panwa and its residential development X29.
Charn Issara REIT Management (CIRM) has been formed to manage the trust. Serving as fund caretaker is SCB Asset Management CEO Smith Banomyong, who vows to complete the transformation process before 2017 to lessen the property tax burden as well as maximise tax incentives.
Read next: Phuket Town is easily one of Thailand’s most endearing enclaves
Source: Property Report