Tag Archives: treit

Interview: Ticon Freehold and Leasehold Real Estate Investment Trust (TREIT)

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.

Continue reading Interview: Ticon Freehold and Leasehold Real Estate Investment Trust (TREIT)

Stocks in the news (advanc, csl, ecf, global, gunkul, hemraj, jubile, kbs, lh, loxley, mk, smart, treit, tu) 25.11.15

Advanced Wireless Network (AWN) paid Bt20.493 billion to the National Broadcasting and Telecommunications Commission (NBTC) yesterday as the first installment of the 1,800MHz license upfront fee. (Khao Hoon, 25/11/15)
Comment: And TRUE hadn’t paid their first part yet. Surprised much? Eyes are now fully focused on the remaining 900 MHz that should be up for bidding in December, we think it’s something that both DTAC and ADVANC have to win, each for their own business reasons otherwise DTAC is effectively out of the telco game and ADVANC won’t have enough spectrum. Now would JAS come to ruin the party for all the incumbents by pushing the price up just as they had done in the first round of bidding?

CSL expects 2016 revenue growth of 1-3%. It is focusing on the ICT business and is expected to have net profit of Bt300mn. (Khao Hoon, 25/11/15)

ECF expects 2016 revenue growth more than 12% and revenue in 2015 of Bt1.3bn. It also plans to use its rights to produce Disney-themed furniture to expand its market. (Khao Hoon, 25/11/15)

GLOBAL expects 2016 revenue to grow 10-15%. It plans to partner in Cambodia and use Bt2bn to expand the business in Thailand. (Thun Hoon, 25/11/15)
Comment: We have never really cared much for this company only because we were always worried about its inventory turnover and HMPRO, as a business, is by far a better choice. But if and its a big if, GLOBAL can expand further in Cambodia, Laos etc etc and have a strong foothold in both markets then I may be more interested, but still their inventory management has me scratching my head.

GUNKUL to partner with Super to build 11 solar farms for a total of 87 MW. It expects to generate electricity this month. (Thun Hoon, 25/11/15)

HEMRAJ plans to sell land in Hemraj Eastern Seaboard 2 to MG. It will sign the contract tomorrow (26/11/15). (Thun Hoon, 25/11/15)
Comment: We are just waiting for that last divvy.

Continue reading Stocks in the news (advanc, csl, ecf, global, gunkul, hemraj, jubile, kbs, lh, loxley, mk, smart, treit, tu) 25.11.15

Stocks in the news (akr, bkd, bjc, bts, eastw, mida, ml, ocean, pscgh, ps, ptg, ptt, rml, tpch, tpipl, treit, vng, wha) 09.01.15

AKR has set a revenues target this year of Bt4.2bn supported its transformer manufacturing and distributing and solar cell business. (Kao Hoon, 09/01/15)

BKD has set a revenues target growth of 20% this year supported by its backlog on hand of more than Bt2bn. It also expects to receive new government project worth billions of baht. (Kao Hoon, 09/01/15)

Berli Jucker’s Metro deal stalls – An attempt by Berli Jucker Plc (BJC) to buy Metro Group’s cash-and-carry unit in Vietnam was aborted yesterday after its shareholders voted unanimously to reject the US$655mn (Bt25bn) deal. The rejection was made because minor shareholders were worried that BJC would face high financial and litigation risks to pursue the transaction under the additional conditions related to the payment of the purchase price. (Bangkok Post, 09/01/15)
Comment: In a surprise turn of events, a listed company that actually listened to its IFA!

Appoints member of NPARK board — BTS group has appointed Mr. Surapong Laoha-Unya to sit on NPARK’s board after the company became the major shareholder of NPARK. It plans to develop land on Phayathai and also a hotel on Sathorn. As for its Roi Chak Saam project, it plans to join hands with three foreign partners. (Khao Hoon, 09/01/15)

Continue reading Stocks in the news (akr, bkd, bjc, bts, eastw, mida, ml, ocean, pscgh, ps, ptg, ptt, rml, tpch, tpipl, treit, vng, wha) 09.01.15

Stocks in the news (bcp, bliss, bts, dtac, ifec, max, mtls, ndr, sc, thcom, treit, twz) 16.12.14

Bangchak eyes non-oil sales, renewables – Bangchak Petroleum Plc (BCP), a majority state-owned oil refiner and retailer, has earmarked Bt10bn to develop its refineries and expand into non-oil business next year. President Vichien Usanachote said apart from refinery upgrades, Bangchak had looked at non-oil business as a means to rely less on oil revenue, as the retail margin was “really slim”. The company will likely invest Bt5bn a year, he said. (Bangkok Post, 16/12/14)
Comment: The news around BCP’s share price still continues to 1) PTT selling its stake, and 2) The drop in oil prices.

Capital increase for PP approved — On 12 December 2014, the board approved a capital increase of 16bn shares at a price of Bt0.105/share, close to par value of Bt0.1/share, via private placement to 12 investors. The company will ask shareholders to approve the plan on 9 January 2015. (Kao Hoon, 16/12/14)
Comment: The shares aren’t even trading at the moment, a relisting in the future perhaps.

BTS ready to book Bt338mn from the OTP’s plan to sign the implementation of joint ticket system this month. Last survey, the Blue Line extension is expected to start its operations 2018. (Kao Hoon, 16/12/14)
Comment: Why the authorities haven’t gotten together to figure out a one card system is beyond me.

Continue reading Stocks in the news (bcp, bliss, bts, dtac, ifec, max, mtls, ndr, sc, thcom, treit, twz) 16.12.14