(Sept 26): Asset World Corp Pcl’s new Thai Real Estate Investment Trust (REIT) aims to raise at least US$1 billion (RM4.07 billion) through a listing as it seeks funds to expand its hotel and commercial property business, according to a senior executive.

The property arm of Thai billionaire Charoen Sirivadhanabhakdi plans to put four hotels and an office building valued at about 48 billion baht (US$1.44 billion or RM5.86 billion) 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 of the REIT, which is targeting a Thai listing in early 2027, she added. 

“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 late on Friday. “We plan to inject more assets into the REIT over time to help unlock their value.”

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$1 billion 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.

Asset World plans to spend 100 billion baht through 2030 on expanding its hotel and commercial businesses, according to its presentation. The company’s portfolio includes 25 hotels under brands such as Marriott, Hilton, Hyatt and Sheraton, along with five office buildings and 11 retail and wholesale properties, according to its website.

The biggest asset earmarked for the REIT is the Empire Building in downtown Bangkok, with an appraisal value of about 25 billion baht, Wallapa said. Four hotels in main tourism destinations of Krabi, Koh Samui and Pattaya will also be included, she said.

Asset World will unveil more details of the REIT offering on Sept 29 after completing regulatory filing with the local Securities and Exchange Commission, according to Wallapa. The company is also preparing nine other properties, including hotel and commercial assets, that it plans to inject into the REIT after its listing, she said.

Uploaded by Kang Siew Li