Foreign Property News | Posted by Si Thu Aung
Thailand’s Strategic Hospitality Extendable Freehold and Leasehold Real Estate Investment Trust (SHREIT) is looking to invest a total sum of 5.8 billion baht ($177 million) in two hotel properties in ASEAN.
The deals will raise its assets under management to 10 billion baht, making it the country’s largest hotel REIT so far.
According to its statement on Thursday, SHREIT is seeking to invest in a leasehold interest in Sofitel Bali Nusa Dua Beach Resort and a freehold interest in Hilton Garden Inn Kuala Lumpur.
SHREIT will finance the investments by issuing up to 415 million shares for subscription by the existing unit-holders (at least 50 per cent) and by the public as well as securing loans of $62.5 million.
James Lim, executive director of Strategic Property Investors Co Ltd (SPI), an independent professional real estate investment trust (REIT) management firm, said the two target properties have great potential as Bali is an international tourist destination for which Indonesia grants free visas to tourists from 169 countries.
It posted growth in the number of tourists for the past 10 years at an annualised rate of 14.6 per cent, with the number of tourists reaching 5.5 million in 2017 and expected to touch 6.5 million this year.
Meanwhile, he added Kuala Lumpur records constant growth in tourism with annualized rate at 4.8 per cent for international tourists and 12.3 per cent for domestic tourists for the past 10 years.
Ref : Property Report
