The Bangkok Real Estate Fund, or BKKCP, is transitioning from a property fund to the ISSARA Real Estate Investment Trust (REIT) this December, aiming to invest in high-potential real estate and create continuous long-term returns.

Ms. Wilai Intakul, Managing Director of Charn Issara REIT Management Co., Ltd., as the manager of the ISSARA REIT, announced that the Bangkok Real Estate Fund, or BKKCP, has successfully transformed from a property fund into the ISSARA Real Estate Investment Trust. The ISSARA REIT was established with the objective of investing in real estate and/or leasing rights for commercial properties, aiming to provide continuous returns to trust unit holders in the long term. In the transformation process, BKKCP will transfer assets to the ISSARA Trust in exchange for newly issued ISSARA trust units. The main assets being transferred include ownership of 24 office and commercial condominium units (Freehold) at Charn Issara Tower on Rama 4 Road, totaling 6,742.64 square meters, and 136 units at Charn Issara Tower 2 on New Phetchaburi Road, totaling 23,945.04 square meters, amounting to a total of 160 units or 30,687.68 square meters, with a total asset value of 1.41 billion baht. Charn Issara REIT Management Co., Ltd. sees opportunities for future investment expansion under the conditions of the transformation into a trust, which allows for the issuance and sale of additional trust units, reducing legal constraints and increasing investment flexibility, thereby enhancing opportunities for investment expansion and tax benefits compared to the limitations of a Property Fund, ultimately increasing returns for unit holders.

Ms. Wilai further stated that on July 25, 2024, the first meeting of BKKCP unit holders for the year 2024 approved the transformation of the fund into the ISSARA REIT under the details and conditions specified in the transformation plan, including the approval to invest in additional properties at Charn Issara Tower and Charn Issara Tower 2, which are currently leased. This will enhance the trust's performance and provide better returns for investors. The ISSARA trust units are expected to begin trading on the stock market on December 11, 2024.

As of the end of Q3 2024, the Bangkok Real Estate Fund, or BKKCP, reported total income of 80 million baht, primarily from leasing properties. The total asset value (TAV) is 1.41 billion baht, with a net asset value (NAV) of 13.7785 baht per unit, and a net investment profit of 42 million baht. The fund has a consistent history of dividend payments, even during the COVID crisis, maintaining a policy of paying dividends at least four times a year at a rate of no less than 90% of net profit. After the transformation into the ISSARA REIT, the fund will seek to invest in real estate and/or leasing rights for commercial properties, focusing on assets located in high-potential strategic locations.

The ISSARA Trust is managed by Charn Issara REIT Management Co., Ltd. (CIRM), with the trustee being Wana Securities Co., Ltd., and financial advisor (FA) being M Infinite Co., Ltd., along with legal advisor Chareon Partners Co., Ltd. The real estate management is handled by Charn Issara Development Public Co., Ltd., which has over 40 years of experience and expertise in managing office and commercial properties.