Ticon Freehold and Leasehold Real Estate Investment Trust (TREIT) listed on the Stock Exchange of Thailand in January 2015. Managing director Amorn Chulaluksananukul and Charasrit A Voravudhi, general manager and head of business development, discuss the fund’s strategy and outlook.
What assets are currently in TREIT?
Our investment portfolio comprises 98 units of premium warehouses and factories with total rental area of 369,705 square metres on 503 rai of land. These include 71 warehouses covering 293,805 sq m (79%), and 27 factories covering 75,900 sq m (21%). Freehold investments account for 56% and leasehold investments 44% of the portfolio. The properties are in strategic locations at 16 leading industrial estates, industrial and logistics parks in Thailand. The fund’s total asset value is 7.7 billion baht.
How will you continue to develop TREIT?
We are continuously exploring new opportunities to expand through a combination of assets purchased from Ticon Industrial Connection Plc and from other companies. What is important is that we have to ensure that the revenue structure of the prospective assets is similar to that of our existing assets which generate recurring and stable income streams. We need to understand clearly how the assets operate as well as identify key success factors of the business and cover locations that are strategically attractive to the existing and potential customer base.
We have a positive outlook for the industry, supported by the introduction of the Asean Economic Community. Thailand continues to be a key destination for international investors who aim to use the country as a distribution hub and manufacturing base, given the competitiveness of the manufacturing industry and ideal location at the centre of Asean.
As the REIT manager, we also have to ensure that TREIT is optimally managed in terms of both revenue and expenses. We need to utilise the appropriate financial instruments to enhance returns to our investors.