News Detail

Date/Time
26 Aug 2020 18:21:00
Headline
Notification of The Progress of Exercise of The Rights Under The Lease Agreement
Symbol
LUXF
Source
LUXF
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                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
______________________________________________________________________
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