Thailand’s Ticon Industrial Connection Plc (TICON) plans to convert three of its property funds into the country’s largest real estate investment trust (REIT) with total combined asset of 32 billion baht ($964 million).
The three property funds are Ticon Property Fund, Ticon Park Logistics Fund and Ticon Industrial Growth Fund. The merger comes amidst the Securities and Exchange Commission regulation that disallows property funds from raising further capital in a move seen to promote REITS.
TICON will hold a meeting of unit holders voting on October 18-19 for voting on the proposal. If the plan secures approvals, TICON will appoint BBL Asset Management as the trustee for the TREIT (TICON REIT) and complete the conversion this year.
“If the merger is successful, TREIT will further acquire additional assets particularly ready-made factories and warehouses worth at least 3.5 billion baht, which will drive its asset size to over 35 billion baht,” said chief executive officer Virapan Pulges.
The three property funds have a combined rental space of 1.5 million square m, covering 22 locations in seven provinces in Thailand. It has made a joint venture with Indonesia’s PT Surya Semesta Internusa Tbk and Japan’s Mitsui & Co for building factories and warehouses with 100,000 square m earmarked in Indonesia.