Grand Uniland Co, a Thai property developer, plans to sell its community mall, I’m Park @ Samyan, worth 700 million baht ($21 million) into a real estate investment trust (REIT) in order to use the proceeds to develop other projects.
The company’s president Suwan Lertpunyaroj said that the REIT will be jointly formed with another developer, who will convert another community mall worth 800 million baht into the REIT.
He said Grand Uniland will share a 15 per cent stake in the REIT. It plans to submit a filing to the Securities and Exchange Commission by the end of this year and launch the REIT in the second quarter of next year. Bualuang Securities is the financial advisor.
Lertpunyaroj said that it targets to develop 10 community malls within a decade, up from two existing community malls, ONE @ Bobae and I’m Park @ Samyan.
The latter has been operational for three years. It has a total rental space of 20,000 square metres and an occupancy rate of 95 per cent. The rental rate is 1,000 baht per square metre per month on average.
It recently launched I’m China Town, a new mixed-use project with an investment of 4 billion baht ($120 million). The project will be located in the China Town area, close to Wat Mangkorn MRT station, for a lease of 60 years and will be completed in the first quarter of 2019.