– Expected to provide excellent returns, driven by outstanding performance from its great lifestyle mall properties
AIM Commercial Growth Leasehold Real Estate Investment Trust (SET:AIMCG), debuted on the Stock Exchange of Thailand today, 12 July. It is expected to provide superior long-term returns, given the excellent quality of its three initial investment assets, lifestyle malls with high occupancy rates. Its first-year distribution payment is estimated at 8%.
Mr Amorn Chulaluksananukul, Chief Executive Officer of AIM Group, the Settlor and Manager of AIM Commercial Growth (AIMCG), reacting to AIMCG’s units being floated on the SET today, expressed his confidence that the great quality of the three lifestyle malls will produce superior returns.
AIMCG’s initial assets valued up to THB 2.88 billion in total, include commercial leasehold interests in UD Town (Udon Thani), Porto Chino (outbound lane of Rama 2 Road in Samutsakorn) and 72 Courtyard (Thonglor / Soi Sukhumvit 55), each of lifestyle malls with great potential and unique characteristics.
Mr Charasrit A. Voravudhi, Managing Director of AIM Group, stated that each of the said three properties offers sheer quality, unique concepts and location advantages in Bangkok or in an economically important city. He highlighted UD Town’s position as the Udon Thani’s largest lifestyle mall and prominent landmark, as well as the project’s location in the city’s core business district and immense popularity among the locals in Udon Thani, neighbouring provinces, and Lao tourists. Developed and managed by Udon Plaza Co, a highly experienced property developer and manager who is equipped with deep insights into customer behavior, UD Town posted approximately 97% in average occupancy rate over the past three years and welcomed 20,000-50,000 visitors per day.
Developed and managed by D-Land Properties Co and built with ‘Neighborhood Mall’ concept, Porto Chino is Samut Sakorn’s first and largest lifestyle mall. It is located on the outbound lane of Rama 2 Road, as a rest area popular among westbound and southbound travelers as well as a food oasis where leading brands of products are available for purchase. The Food Port area is going to be renovated and local well-known restaurants will be added to serve neighboring residences and locals. Its average occupancy rate stood at approximately 84% for the past three years, and it has been visited by 4,000-10,000 persons per day.
The 72 Courtyard project is developed by Membership Co and situated in the heart of Thonglor / Soi Sukhumvit 55, a prime area frequented by high-end customers. It offers a unique mix of restaurants and bars that are open day and night. The average occupancy rate reached 100% over the past three years, and its visitors totaled 300-1,500 per day, said Mr Charasrit.
Mr Sittichai Mahaguna, Head of Investment Banking Group of Bank of Ayudhya PCL, as Financial Advisor, commented that real estate investment trust (or REIT) is a great investment choice for investors who seek to achieve better diversification through investment in assets that produce stable returns at higher rates compared to bank deposits. He noted AIMCG’s policy to distribute at least 90% of its adjusted net income for each financial year, and that the first-year’s distribution rate is estimated at 8% (according to the pro forma financial information reviewed by auditor and prepared based on AIMCG’s assumptions for the 12-month period of 1 July 2019 to 30 June 2020, and based on unit price of THB 10 each). He believed that AIMCG, managed by AIM Group, a firm with direct experience in REIT management, can make decent, stable distribution payments long term.
Mr Udomkarn Udomsab, Managing Director of Krungsri Securities PCL, as Lead Underwriter, added that AIMCG’s initial assets are the leasehold interests in the said three lifestyle malls with invested area of approximately 45,000 SQM; 33,000 SQM and 5,000 SQM, respectively, with the lease term of about 21 years, 30 years and 13 years for UD Town, Porto Chino and 72 Courtyard, respectively. He stated that the REIT Manager will appoint Udon Plaza Co, D-Land Properties Co and Chetchot Co as property managers, given their relevant experience and expertise and insights into customer behaviour as well as their ownership interests in, and management control over, the respective malls.
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