LHSC Terminal 21 Shopping Center REIT from the Land and Houses Public Company Limited has announced a maximum offering price of 10.80 Baht per unit for additional trust units. Existing unit holders and the general public can subscribe from November 4-8, 2023. Funds will be raised to expand investment in the “Terminal 21 Pattaya Shopping Center” with a total value not exceeding 5.7 billion Baht, benefiting from the recovery of tourism and the downward trend of interest rates after the Bank of Thailand announced a 0.25% reduction in the policy interest rate to 2.25% per annum, supporting an estimated first-year return rate of approximately 9.7% after additional investment.

Ms. Jittisa Jaroenpanit, Executive of Investment Banking at Kasikornbank Public Company Limited, as the financial advisor and co-distributor, revealed that after LHSC announced its new investment expansion into Pattaya, it is preparing to invest further in the lease rights of the “Terminal 21 Pattaya Shopping Center,” a shopping airport in the heart of North Pattaya from the Land and Houses Group, which will benefit from the strong recovery of Thailand's tourism and the downward trend of interest rates. The Monetary Policy Committee (MPC) announced a 0.25% reduction in the interest rate from 2.50% to 2.25% per annum. The maximum offering price for additional trust units is set at 10.80 Baht per unit, with subscriptions open for existing LHSC unit holders and the general public from November 4 to 8, 2023, at the maximum offering price. Existing unit holders can subscribe through the trust unit distributors, including Kasikornbank Public Company Limited and Siam Commercial Bank Public Company Limited, while the general public can subscribe at Kasikornbank Public Company Limited, Siam Commercial Bank Public Company Limited, Innovest X Securities Company Limited, Land and Houses Securities Public Company Limited, and CIMB Thai Bank Public Company Limited. For existing unit holders with subscription rights, the subscription ratio is set at 1 existing trust unit for 0.5941 additional trust units. In the event that the final offering price is lower than the maximum offering price, subscribers will receive the difference refunded within 7 business days (for bank transfers) and 10 business days (for checks) from the end of the subscription period.

Mr. Yosweer Sutthikulpanit, Executive of Investment Banking and Capital Markets at Siam Commercial Bank Public Company Limited, as the financial advisor and co-distributor, stated that LHSC is a retail REIT sponsored by the leading property developer Land and Houses, currently holding assets in the Terminal 21 Asoke shopping center and expanding investment in the Terminal 21 Pattaya shopping center, located in a prime tourist area, a destination for both international tourists and Thais. This additional investment will help diversify risks and enhance LHSC's potential to strengthen income and increase opportunities for good returns for unit holders. Moreover, both projects are considered Tourist Malls that will directly benefit from the strong recovery of tourism and the 0.25% reduction in the policy interest rate by the MPC. If financial institutions gradually lower interest rates thereafter, it will further positively impact the PF & REIT sector, which is an alternative asset group in the Yield Play category that provides consistent returns from dividends.

Mr. Monrat Padungsit, Managing Director of Land and Houses Fund Management Company Limited (LH Fund), as the trust manager of LHSC, stated that the trend of interest rates in Thailand and globally entering a downward cycle will make investments in Property Funds and REITs more attractive. The dividend spread between Thai REITs and 10-year Thai government bonds is currently about 5% and has the potential to increase further. This is a good time to invest in Thai REITs, especially retail REITs investing in Tourist Mall shopping centers, which have a good revenue growth trend in line with the increasing number of tourists and consumer spending. LHSC, managed by LH Fund, is preparing to invest further in the lease rights of the Terminal 21 Pattaya shopping center, with a total value not exceeding 5.7 billion Baht (excluding VAT and related fees). Funding will come from the issuance and offering of additional trust units worth not exceeding 3.19 billion Baht, with the remainder sourced from loans from financial institutions, which will nearly double the asset portfolio and maintain a similar investment ratio in Bangkok and Pattaya, helping to diversify risks and create stability in income sources, as well as providing opportunities for even better returns for unit holders, with an estimated return rate of 9.7% for 2025 after additional investments.

Dr. Natthakawin Chiamchotipattanakul, Senior Director of Infrastructure and Real Estate Fund Management at Land and Houses Fund Management Company Limited, as the trust manager, stated that LHSC's performance in the first half of 2023 generated total investment income of 696.3 million Baht and a net profit from investments of 321.4 million Baht, growing over 35% from the same period last year, reflecting a remarkable recovery and benefiting from the overall growth of Thailand's tourism. LHSC has a history of consistently paying dividends, having paid dividends from operational results every two months (6 times a year). Recently, it announced a dividend payment from the operational results for the first eight months of this year totaling 0.697 Baht per unit. Additionally, LHSC reaffirms its quality REIT status by receiving the Best REIT Performance Awards in the Business Excellence category at the SET Awards 2023 and has been nominated for consideration for this award again in 2024. The new asset, the Terminal 21 Pattaya shopping center, which will be further invested in this time, has shown outstanding performance, with an average foot traffic of over 37,000 visitors per day in Q2 2023, an increase of over 10% from the same period in 2022, and higher than pre-COVID-19 levels, with an average occupancy rate of 99%.

Warning: Investors should understand the nature of the product, return conditions, and risks before making investment decisions.