Logo of Phnom Penh Post newspaper Phnom Penh Post - New REITs allow Thai property owners to set buy-back price




New REITs allow Thai property owners to set buy-back price

New REITs allow Thai property owners to set buy-back price

A new category of real estate investment trusts (REIT) will be set up as a measure to help property businesses in Thailand affected by the Covid-19 crisis.

The Securities and Exchange Commission (SEC) said the new REITs will come with a buy-back obligation under which properties are sold back to their owners at a specified period and value.

For example, if a hotel’s unit value is 100 baht ($3.20) during normal times, during the Covid-19 crisis, the owner can sell them to the REIT at 50 baht to boost financial liquidity.

The owner can specify that he/she will buy the hotel back in five years at 70 baht, whether the value then is higher or lower than the 70 baht.

Under the other category, so-called “REIT with first right”, owners are given first option to buy back their properties but no price is fixed in advance. If the owners are not interested in repurchasing, the properties can be offered to other investors.

The SEC said that REIT investment units will be sold to general investors, with conditions and details similar to debentures.

Official conditions on the new REITs should be effective by the fourth quarter of this year, it added.

THE NATION (THAILAND)/ASIA NEWS NETWORK

MOST VIEWED

  • Angkor provides ‘valuable’ water storage

    The Apsara National Authority (ANA) has stored millions of cubic metres of water at reservoirs in the Angkor area after Cambodia experienced a series of rainstorms over the last few days. The storing of the water, besides serving temple conservation, will also be used to

  • Would you like fries with that? US burger chain makes Phnom Penh debut

    California-based The Habit Burger Grill restaurant chain is all set to serve up a delicious array of charbroiled burgers and sides at its newest international location in the centre of Phnom Penh. The Habit is “renowned for its award-winning Charburgers grilled over an open flame,

  • Floods prompt evacuations in Kampong Speu

    Rain-induced floods and water flowing from Kampong Speu province have submerged the houses of 1,527 families living close to the Prek Thnot River in Spean Thma, Tien, Kong Noy and Roluos communes in Phnom Penh’s Dangkor district, according to data from local authorities. Spean Thma

  • Banteay Meanchey floods kill one more as death toll reaches 15

    As floodwaters start to recede in Pursat, Battambang and Pailin provinces and Phnom Penh, Banteay Meanchey continues to bear the brunt as one more person was killed on Monday, bringing the total number of flood-related deaths to 15 in the province this month. Banteay Meanchey provincial

  • Serving coffee with a side of robots

    The eye-catching glass building surrounded by greenery at the intersection of Streets 371 and 2002 in Phnom Penh’s Sen Sok district is more than just another coffee shop where you can while away a few hours. UrHobby House cafe is filled with robots and characters from

  • Cintri strike ends, workers’ contracts to be terminated

    CINTRI (Cambodia) Ltd rubbish collectors who have been on strike for the past 13 days agreed to return to work starting Wednesday evening after the company agreed to terminate their contracts at the end of January next year and provide seniority payments and other benefits to