December 28, 2023 -- 
Frasers Property Thailand Industrial Freehold & Leasehold REIT or (FTREIT), has raised THB 2,090 million from trust unitholders in its capital raising exercise that was 122% subscribed. In total, 220,000,000 trust units were priced at THB 9.50 per trust unit, offered to members of the general public who are existing trust unitholders by means of the General Mandate.
Mr. Thanarat Boonyakosol, Managing Director of Frasers Property Industrial REIT Management (Thailand) Company Limited or “FIRM”, REIT manager of Frasers Property Thailand Industrial Freehold & Leasehold REIT or (FTREIT), said: “We are encouraged by the strong support received from our existing institutional and retail investors. This capital increase exercise was oversubscribed by 122%, with applications received for 220,000,000 units. The result affirms investors’ confidence in FTREIT’s solid performance and steady growth from our proactive asset management and high performing asset investment expansion.”
At a glance
- Company
- Frasers Property Thailand Industrial Freehold & Leasehold REIT (FTREIT)
- Ticker
- FTREIT
- Announcement
- Financing
Key figures
- Capital raised
- THB 2,090 million
- Subscription level
- 122%
- Trust units offered
- 220,000,000
- Price per trust unit
- THB 9.50
People
- Thanarat BoonyakosolManaging Director of Frasers Property Industrial REIT Management (Thailand) Company Limited
Currently, FTREIT has been assigned a rating of ‘A/Stable’ by TRIS rating.
FIRM will utilise the raised capital received to repay loans used for the redemption of matured debentures in 2023, maintain the appropriate ratio of FTREIT’s interest-bearing debt to total asset value, reduce burden of interest expense, and prepare for investment opportunities in additional potential assets in future.
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Questions around this news
How does FTREIT plan to use the capital it raised?
The release says the proceeds are intended to repay loans that funded the redemption of matured debentures in 2023, support an appropriate balance between interest-bearing debt and asset value, and reduce interest expense. It also says the capital will help prepare for future investment opportunities in additional potential assets.
What is a REIT, and how does it work?
A real estate investment trust, or REIT, is an investment structure that pools investors’ money to own or finance income-producing real estate. Investors typically hold units or shares in the trust and may receive distributions from its income. REIT structures and rules vary by jurisdiction, including how assets are held and how income is distributed.
Who could apply for units in this capital raising exercise?
The release says the 220 million trust units were offered to members of the general public who were already trust unitholders. The offer was made under a General Mandate. It does not provide further details about application procedures, allocation decisions, or whether any individual applicant received all the units requested.
