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Business planning

ONE Asset Management Unveils Thai Industrial Real Estate Investment Trust Units

Strategic Insights

— 1 min read

ONE Asset Management (ONEAM) is ready to introduce Thai Industrial Real Estate Investment Trust (TIREIT) units to general investors, capitalizing on the shifting investment landscape as interest rates decline. With the Thai economy exhibiting signs of recovery, the trust is poised to benefit from the expected increase in industrial land and warehouse rentals. TIREIT's unique 100% freehold assets in leading industrial estates and warehouses have a potential for long-term valuation growth.

Key Takeaways:

  • TIREIT units will be offered to general investors from October 7-18, according to ONEAM's chief executive Pote Harinasuta.
  • The Thai economy is expected to recover continuously throughout the year, driven by government spending, investment, and consumption.
  • The Bank of Thailand's monetary policy has remained tight, with a predicted policy rate of 2.5% in 2024 and 2% in 2025.
  • TIREIT has a higher potential for purchases of assets to boost rental income after the conversion from Thai Industrial Fund 1 (TIF1).
  • The trust has 100% freehold in land and buildings in leading industrial estates and warehouses, which are expected to see valuation increase in the long term.
  • The current valuation of TIREIT is estimated at 2.25 billion baht based on the cost approach method.
  • Industrial land for rent is estimated to grow by 18-20% per year between 2023 and 2025.
  • The occupancy rate of completely built factories was 81.8%, and that of warehouses was 79.7% in the fourth quarter of 2023.
  • The solid demand for industrial land and warehouses for rent is driven by the growth of express delivery in Thailand from e-commerce and logistics businesses.
  • TIREIT offers a return on dividends of 7%, up from 5.8% before the conversion and increase in investment.

Statistics:

  • 7-18 October: the period when TIREIT units will be offered to general investors.
  • 2.5%: the predicted policy rate of the Bank of Thailand in 2024.
  • 2%: the predicted policy rate of the Bank of Thailand in 2025.
  • 18-20%: the estimated growth rate of industrial land for rent between 2023 and 2025.
  • 81.8%: the occupancy rate of completely built factories in the fourth quarter of 2023.
  • 79.7%: the occupancy rate of warehouses in the fourth quarter of 2023.
  • 7%: the return on dividends offered by TIREIT.

Sources:

  • ONE Asset Management (ONEAM)
  • Pote Harinasuta, chief executive of ONEAM
  • Thai Industrial Fund 1 (TIF1)
  • Bank of Thailand
  • JCK International Public Co Ltd.

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