SET-listed Country Group Development Plc (CGD) is planning to set up a real estate investment trust (REIT) in the first quarter of the current year, and plans to acquire domestic, as well as foreign assets from the the funds raised through it.
The planned REIT will acquire the Anchorage Point Data Centre in London for 1.3 billion baht ($40.63 million). The centre is reportedly worth 1.35 billion baht ($42.19 million) and its office space is wholly rented out.
CGD,which currently owns 100 per cent in the centre, will reduce stake to about 30 per cent after selling it to the REIT (which, expects to gain at least 7 per cent dividend yield on it).
CGD chief executive Ben Taechaubol said the REIT’s fund will be used to acquire property assets in Thailand and overseas to help it generate income proportion of more than 50 per cent.
Meanwhile, Thanapol Sirithanachai, president of Golden Land Plc, disclosed that it will sell two office buildings, Sathorn Square and Park Venture, worth 10 billion baht to its REIT.
So far, it is on the process to submit the filing to the Securities and Exchange Commission and expects to finish the establishment in the second quarter.
Income from the sale will be used to repay debt and to help lower its debt-to-equity ratio from 1.3 to less than 1. The remaining will be kept as the company’s working capital.