26 Aug 2020 18:21:00
Notification of The Progress of Exercise of The Rights Under The Lease Agreement
No. TT/IM 223/2020 26 August 2020 Re Notification of The Progress of Exercise of The Rights Under The Lease Agreement To The President The Stock Exchange of Thailand Ref: 1. Letter No. TorTor./JorTor. 113/2563 dated 29 April 2020 re The Exercise of The Rights Under The Lease Agreement 2. Letter No. TorTor./JorTor. 140/2563 dated 29 April 2020 re The Exercise of The Additional Rights Under The Lease Agreement As TMB Asset Management Company, Limited (the "Management Company") on behalf of the Management Company of Luxury Real Estate Investment Fund ("LUXF") has received information from Sustainable Luxury Hospitality (Thailand) Limited ("SLH-Lessee") as the lessee of the property invested by LUXF i.e. the Six Senses Yao Noi located on Yao Noi Island, Amphoe Koh Yao, Phang Nga Province (the "Hotel") to exercise its rights under the lease agreement in refrainment from the Fixed Rent payment for the duration of the Force Majeure event, for the rent duration from March 2020 onwards until such Force Majeure event would end. This is due to the pandemic of Corona Virus 2019 (Covid-19) which has continuously affected since March 2020 until now. Although the Government of Thailand had announced the relaxation of surveillance measures of the pandemic of Corona Virus 2019 (Covid-19), foreign tourism is still not allowed to travel into Thailand which is resulting in a number of foreign tourists from abroad still not significantly increase. Thus, the business of the Hotel is one of the businesses affected by such a crisis cause the Hotel has the main customers who are foreign tourists from abroad, which shall deem that the Force Majeure under the Lease Agreement shall be effective. The Management Company had advised with SLH-Lessee under the suggestions from the legal advisor of LUXF to consider for the alternative to minimize the effects which will be occurred to the lease of the Hotel and LUXF by the Hotel has been partially reopened from the end of July 2020 onwards. Thus, for the purpose to maintain the Hotel by the SLH-Lessee, to retain the Hotel's staff and to maintain the condition of the Hotel to be ready for the re-opening when the pandemic of Corona Virus 2019 (Covid-19) would be improved and the Government allowed the foreign tourist for traveling from abroad into Thailand. In this regard, for decreasing the effect of the Hotel, the Hotel had started to marketing in domestic tourism which is not the main customer of the Hotel in the past. However, the Hotel had quite good feedback from the domestic tourist but the revenue of the Hotel is still below the average in the normal case. The revenue in such a period may be sufficient only for any expense which occurs from the hotel operation including the expenses for maintenance of the Hotel. Thus, the Force Majeure under lease agreement is still effective, LUXF still does not receive the fixed rental fee as prescribed in the lease agreement. Furthermore, LUXF will continue monitoring the Force Majeure event and notifying of any details to the unitholders of LUXF accordingly. Yours faithfully, Phiphat Phisanuwongrak Authorized Signatory ______________________________________________________________________ This announcement was prepared and disseminated by listed company or issuer through the electronic system which is provided for the purpose of dissemination of the information and related documents of listed company or issuer to the Stock Exchange of Thailand only. The Stock Exchange of Thailand has no responsibility for the correctness and completeness of any statements, figures, reports or opinions contained in this announcement, and has no liability for any losses and damages in any cases. In case you have any inquiries or clarification regarding this announcement, please directly contact listed company or issuer who made this announcement.