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Real estate industry

DTP Global REITs Launches DTP Hotel and Service Apartment Leasehold REIT Valued at Up to THB 4.114 Million

Strategic Insights

— 1 min read

DTP Global REITs Management Co., Ltd. (DTPRM) has introduced the DTP Hotel and Service Apartment Leasehold REIT with Conditions and Termination Periods (DTPBB), a highly structured investment opportunity in premium hotel and serviced apartment assets. The REIT will invest in properties developed by Magnolia Finest Corporation Limited (MFC), a subsidiary of Magnolia Quality Development Corporation Limited (MQDC). DTPBB is designed as a REIT buyback, enabling the original owner to repurchase the assets at the end of the investment period. The REIT will acquire leasehold rights in Waldorf Astoria Bangkok and the serviced apartments at Magnolias Ratchadamri Boulevard, along with associated building system rights.

Key Takeaways:

  • The REIT will invest in premium assets developed by Magnolia Finest Corporation Limited, a subsidiary of Magnolia Quality Development Corporation Limited.
  • The REIT is structured as a buyback, allowing the original owner to repurchase the assets at the end of the 5-year period.
  • The REIT will acquire leasehold rights in Waldorf Astoria Bangkok and serviced apartments at Magnolias Ratchadamri Boulevard, with associated building system rights.
  • The original owner retains the right to buy back assets in Year 3 and Year 4, and is obligated to buy back in Year 5.
  • The properties will be leased back to the owner for operation, ensuring fixed rental income for the REIT: 7.00% in the first 3 years, 7.10% in Year 4, and 7.20% in Year 5.
  • The arrangement includes a rental deposit equal to one quarter's rent, providing additional security for investors.
  • The REIT units will be offered to institutional and ultra-high-net-worth investors (UHNWI), with Yuanta Securities (Thailand) and Dao Securities (Thailand) serving as lead underwriters.
  • Beyond Securities and Maybank Securities (Thailand) will join as co-distributors, while Krung Thai Asset Management Public Company Limited will act as trustee.

Statistics:

  • The REIT will be valued at up to THB 4,114 million.
  • The rental income for the first 3 years will be about THB 223.39 million (7.00% of the total).
  • The rental income will increase to about THB 229.59 million by Year 5 (7.20% of the total).

Sources:

  • DTP Global REITs Management Co., Ltd.
  • DTGO Prosperous Co., Ltd.
  • Magnolia Finest Corporation Limited (MFC)
  • Magnolia Quality Development Corporation Limited (MQDC)
  • Yuanta Securities (Thailand)
  • Dao Securities (Thailand)
  • Beyond Securities
  • Maybank Securities (Thailand)
  • Krung Thai Asset Management Public Company Limited

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