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Listing on SET

Equity

IFF

REITs

Infra Trust

Thai Company

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Infrastructure Business

Real Estate Investment Trust : REIT

What is REIT?
Listing rules and criteria
Preparation prior to listing on the exchange
Relevant fees / Tax
Documents / Activities

What is REIT?

REIT is established for raising capital from both retail and institution investors to invest in high potential real estate.
REIT developed for raising capital via real estate from a Property Fund to have international standards and flexibility to raise capital. For instance, professional management, borrowing, and to support Thai real estate business in the long term.

Why REIT?

Owners of property :
Owners may raise capital from real property that is already generating revenue by renting and use that capital to invest and/or develop new projects.
Investor :
- Offer variety of ways to invest in real property which have long term returns and low price fluctuations
- Greater confidence under the management of real estate experts;
- Smaller investment is required than to directly invest in real property.
- Receiving return of 90% adjusted net profit.

REIT Structure

Type of Investment

Main Investment of REIT

ลักษณะทั่วไปของ REIT

Establishment	Trust deed/drafted trust deed must comply with the Trust for transactions in Capital Market Act B.E.2550 (2007) and relevant notifications issued by SEC. Name must reflect the main characteristics and investment policy of the trust
Minimum Size	The paid-up capital after units offering must be ≥ 500 million Baht.
Tranche	Be able to launch many types of unit trust which give different rights and benefit. (multi-tranche) Tranche will have different rights and benefits with only things in accordance with the prescribed rules stated in the trust deed. Same unit trust needed to have equal rights and benefits.
Main Investment	All kinds of real estate for example office buildings, department stores, malls, warehouse, and other structures. May invest in real estate domestic or real estate abroad Real estate already generating income must be > 75% of total value of units offered plus loan (if any) Invests no more than 10% of NAV in green field projects.
Nature of REIT	Leasing real estate without operating other businesses such as hotels and hospitals. Lessees must not use the real estate to operate immoral in nature. In the case of leasing real estate for the operation of other businesses the portion of rent dependent on the operating results of the lease must be < 50% of the fixed rent.
Dividend payment to unit trust holders	> 90% of adjusted net profit.
Leverage Limit	< 35% of the total assets; in the case of assets with an investment grade, < 60% of the total assets; In accordance with trust deed; May collateralize REIT asset.
Number of Unit holder	> 250
Units Transaction	REIT units must be listed on the SET.

Raising capital for Real Estate business

* Company raising capital: 1) Company 2) Holding company and 3) Infrastructure Business

Related Info.