Fundraising of property funds on The Stock Exchange of Thailand (SET), through both initial public offerings (IPOs) and recapitalization, reached an all-time-high of THB 30.03 billion (USD 938 million) in the first eight months of 2012, and this record amount is expected to grow further in 2013.
Of the THB 30.03 billion raised in January-August this year, THB 27.44 billion was raised through IPOs and the remaining THB 2.59 billion was from recapitalization. The record amount has risen continuously from THB 8.59 billion in 2010 and THB 14.46 billion in 2011.
“We see the uptrend should continue because establishment of new property funds and recapitalization could be done under the existing regulations until 2013. Thus, to help facilitate property fund issuers, we are ready to advise on fund issuance, listing procedures and preparing for listing, all free of charge,” said Chanitr Charnchainarong, SET Executive Vice President, Issuer & Listing Division and President, Market for Alternative Investment (mai).
In the first six months of 2012, the property fund sector reported higher rental and service revenues, up 8.23 percent from a year earlier to THB 4.39 billion, while net profits rose 11.65 percent from the same period of last year to THB 3.50 billion. In addition, the sector showed a 15.29 percent rise in interim dividend payments at THB 4.15 billion from a year earlier.
Currently, there are 39 property funds listed on SET, with a combined market capitalization of THB 149.28 billion, and average daily trading value of THB 110 million which was up 189 percent from a year earlier. The funds have an average dividend yield of 7.07 percent. Since the start of this year, there have been new four property funds listings, which are Land and Houses Freehold and Leasehold Property Fund (LHPF), Quality Houses Hotel and Residence Freehold and Leasehold Property Fund (QHHR), Tesco Lotus Retail Growth Freehold and Leasehold Property Fund (TLGF), and UOB Freehold Eight Thonglor Property Fund (UOB8TF).
In addition, at least one property fund is ready to list on SET in September, namely, CPN Commercial Growth Leasehold Property Fund. For more information on property funds, please visit www.set.or.th.
