Thailand’s Ticon Industrial Connection Plc (TICON) plans to convert three of its property funds into the country’s largest real estate investment trust (REIT) with total combined asset of 32 billion baht ($964 million).
The three property funds are Ticon Property Fund, Ticon Park Logistics Fund and Ticon Industrial Growth Fund. The merger comes amidst the Securities and Exchange Commission regulation that disallows property funds from raising further capital in a move seen to promote REITS.
TICON unveiled plans to convert three property funds – TFUND, TLOGIS, TGROWTH into TREIT by fixing a swap ratio at rate of 1 investment units of funds to 0.9874 / 1.0129 / 0.8673 trust units of TREIT, accompanied by a cash of 1.6977 / 1.7415 / 1.4911 baht per unit respectively. Therefore, the funds/trust unitholders’ meeting will be held during 18-19 October.
The group is confident that the move will surely bolster unitholders’ benefits from the conversion. After a successful merger, TREIT will further invest at least Bt3.5 billion in TICON assets, which will drive a huge asset size to reach Bt35 billion, making TREIT become the largest industrial trust in Thailand.
TICON will hold a meeting of unit holders voting on October 18-19 for voting on the proposal. If the plan secures approvals, TICON will appoint BBL Asset Management as the trustee for the TREIT (TICON REIT) and complete the conversion this year.
“If the merger is successful, TREIT will further acquire additional assets particularly ready-made factories and warehouses worth at least 3.5 billion baht, which will drive its asset size to over 35 billion baht,” said chief executive officer Virapan Pulges.
The three property funds have a combined rental space of 1.5 million square m,…