Thailand: TCC Group makes tender offer to fully buy three property funds

Visual from the company website

TCC Land Asset World Estate, a subsidiary under the umbrella of TCC Group owned by Thai tycoon Charoen Sirivadhanabhakdi, has made a tender offer to acquire three property funds for 80 billion baht ($2.33 billion), according to local media’s reports.

TCC Land Asset World currently holds 33 per cent in each property fund, including Thai Commercial Investment Freehold and Leasehold Fund (TCIF), Thai Retail Investment Fund (TRIF) and Thai Hotel Investment Freehold and Leasehold Property Fund (THIF).

The company has offered to pay 29 billion baht for the remaining fund units in TCIF, 30 billion baht for THIF and 21 billion baht for TRIF. However, the tender offer’s prices are lower than the company’s trading price on the stock market.

Chavinda Hanratanakool, chief executive officer of Krungthai Asset Management (KTAM), manager for the funds, told the local media that the tender offer’s price is not worth the return that the shareholders will gain in the long term because most assets in these three funds are freehold and situated in the prime locations.

TCIF’s assets comprise Interlink Tower, Athinee, Empire Tower, CWU Tower and 208 building. TRIF’s assets include Pantip Plaza Ngamwongwan, Pantip Plaza Chiangmai, Pantip Plaza Bangkapi, Pantip Plaza Watergate, Asiatique The Riverfront, Tawanna and O.P. Place.

THIF, the largest fund among the three, owns 12 luxury hotels and resorts in Thailand.

KTAM will propose to the funds’ shareholders on May 17. Meanwhile, TCC Land Asset World Estate stated in the filing that the tender offer will be cancelled unless the transactions are complete by May 24.

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