April 2, 2013
Thai bourse lists ERWPF property fund on April 4
BANGKOK, April 2, 2013 - The Stock Exchange of Thailand (SET) will list Erawan Hotel Growth Property Fund, managed by SCB Asset Management Co., Ltd, with a size of THB 1,831.44 million (approx. USD 61 million), on its main board on April 4, under the ticker "ERWPF".
“ERWPF is the first property fund listing on the Thai bourse this year. It sold 176.10 million units via initial public offering (IPO) at THB 10.40 per unit, with a total worth of 1,831.44 million, between March 15 and 22," said SET Senior Vice President Paveena Sriphothong.
Jotika Savanananda, SCB Asset Management’s President said: “ERWPF, a closed-end specific property fund, invests in the freehold rights to the land and buildings, including utilities, furniture and equipment of IBIS Hotel Phuket Patong (260 rooms) and IBIS Hotel Pattaya (254 rooms), owned by the Erawan Group plc (ERW) and managed by Accor. The strengths of this property fund are excellent property locations and consecutive growth of revenue performance. In 2012, Ibis Patong had revenue of THB 114.2 million and Ibis Pattaya booked THB 106.3 million.
ERWPF will receive fixed rental fees plus variable fees as indicated in the agreement. Also, during the first four years, the hotels guarantee minimum revenue for the fund of a total THB 111.5 million per year. Returns could be increased as the fund has a clear policy to sell out its assets by auction every five years. We believe the fund will be a good choice for investors, as they will have the opportunity to get returns from Erawan Group’s investment policy.”
ERWPF’s dividend policy is to pay at least once a year, at no less than 90 percent of net profit, excluding unrealized gains from auditing property reappraisals of leases during the related accounting period. The fund's top three unitholders after its IPO are The Erawan Group pcl (20.00 percent) American International Assurance Co., Ltd. (7.78 percent), and SCB Life Assurance pcl (6.77 percent).