ALLY Real Estate Investment Trust (REIT) is continuing to expand its investment portfolio, announcing plans to invest in two additional projects: "T10 by Village Hub" and "Village Hub Sai Mai," with a total value of 46 million baht. This move aims to support operational growth, manage cash flow stably, and enhance returns for unit holders. In the first year, the estimated yield is projected to exceed 10% per project, reflecting the growth potential of the community mall market in the new era, where consumers are seeking convenience and happiness close to home. The investment is expected to commence in May 2025.

          Mr. Kwinth Aiemsakulrat, Chief Executive Officer of Ally REIT Management Co., Ltd., as the manager of Ally Trust, stated that “The plan to invest in additional assets in the T10 by Village Hub and Village Hub Sai Mai projects marks the first collaboration in project management between the company, Baan Setthakit Co., Ltd., a real estate developer specializing in small community mall projects. The total initial investment for both projects is 46 million baht, funded from the trust's liquidity, aligning with the strategy of effective cash flow management to reduce the financial costs affected by interest rate fluctuations, thereby increasing returns for unit holders. Additionally, the strategy focuses on seeking new assets that emphasize investment in shopping centers located in high-potential areas, catering to the needs of modern consumers in rapidly expanding residential locations with future growth potential.”

          The first asset planned for additional investment is the T10 by Village Hub project in the high-potential area of Tiwanon Road, with an initial investment value of 16 million baht. This small community mall covers an investment area of approximately 1,614 square meters, featuring tenants that focus on retail and dining, providing convenience for shopping and services, such as KFC, 7-11, and Amazon. Currently, it boasts a 100% occupancy rate, making it a small project with strong management potential and good operational performance. The second project is the Village Hub Sai Mai project on Sai Mai Road, with an initial investment value of 30 million baht, covering an investment area of approximately 4,680 square meters. It currently has an occupancy rate of over 97%, with leading tenants including LOTUS’s go fresh, B-Quick, and Banana IT, offering a comprehensive shopping experience in one location.

          Both projects are considered assets in high-potential locations that meet the behaviors of modern consumers, especially in the small community mall market, which is expanding in line with the rapid growth of residential areas and a consumer base with purchasing power. This supports the ongoing urban expansion and the changing lifestyles of modern consumers who seek convenience close to home. After the trust invests in these additional projects, Baan Setthakit Co., Ltd. will continue to manage the projects to ensure continuity and confidence in managing the project areas and the tenants. The investment in the two projects is expected to be completed by May 2025.

          Ally Trust is also committed to maintaining effective financial cost management to increase returns from the additional asset investments. It is anticipated that once the investments in both projects are completed, the trust will immediately recognize increased income from the new assets, with an estimated yield of over 10% per project in the first year, positively impacting the trust's operational performance. This investment will be funded from the trust's cash flow, emphasizing stable financial cost management as a crucial part of enhancing revenue from operations for the trust, while also reducing financial cost expenses impacted by interest rate fluctuations, without affecting the debt-to-equity (D/E) ratio and the distribution of benefits to unit holders.

“In 2025, Ally Trust plans to invest in additional assets with a total investment budget of approximately 250 million baht, and will continue to seek high-quality new projects in shopping centers and mixed-use developments, as well as look for professional management to collaborate in driving growth. Expanding opportunities to invest in new high-potential assets will help strengthen the trust's portfolio for long-term growth and provide better returns for unit holders in the long run,” Mr. Kwinth concluded.