Prospect REIT Management Co., Ltd., the manager of the real estate investment trust and leasehold rights for Prospect Logistics and Industrial, or “PROSPECT REIT,” held its first unitholders' meeting of 2023 on January 9, where it was resolved to approve a third capital increase of up to 450 million units and long-term borrowing not exceeding 2 billion baht. This is to support additional investment plans in the Bangkok Free Trade Zone 4 (BFTZ 4) in Bang Pakong, Chachoengsao, with a total rental area of 187,949 square meters, valued at no more than 5.04 billion baht. This marks an expansion of investment in quality assets from a strong location in the Bangna-Trad area of Samut Prakan to a new strategic location in the Eastern Economic Corridor (EEC), reflecting unitholders' confidence in the growth potential and operational direction of the trust in the long term. After the investment, the total asset value of the trust is expected to reach approximately 14 billion baht.

Ms. Oranong Chaitong, Chief Executive Officer of Prospect REIT Management Co., Ltd., as the trust manager, stated, "The BFTZ 4 Bang Pakong project, in which we will invest further, is a high-quality project located in a strategic area of the Eastern region, EEC. Currently, it has a high occupancy rate of 98% (excluding areas under development), which will help increase the size of the trust and sources of income, enhance liquidity, and diversify investment risks into new locations. This additional investment aligns with the trust manager's strategy to build sustainable strength through investments in high-potential assets, along with effective management of funding sources and long-term debt structure, as well as extending the leasehold period of the managed assets to enhance the stability of future returns."

PROSPECT REIT is preparing to invest in the leasehold rights of land and some buildings in the Bangkok Free Trade Zone 4 (BFTZ 4) for a period of 30 years, with an option to extend for another 30 years, including ownership of related properties, with a total investment value not exceeding 5.04 billion baht. This includes warehouses, factories in ready-built and built-to-suit formats, and offices, totaling 101 units on a rental area of approximately 187,949 square meters, covering both the General Zone and Free Zone, with tax benefits for businesses engaged in import-export activities, meeting the needs of both Thai and foreign operators.

This will be the fifth additional investment for PROSPECT REIT, significantly enhancing the quality of the portfolio and extending the average leasehold period from approximately 16 years to about 28 years. It will also diversify the locations from the previous projects in the Bangna-Trad area of Samut Prakan to the EEC zone and spread the tenant base across various industries, such as food and beverage, automotive, industrial materials and machinery, steel and metal products, packaging, and consumer goods and pharmaceuticals, which are stable businesses supporting long-term growth and good returns for unitholders.

After the investment, PROSPECT REIT is expected to have a total asset value of approximately 14 billion baht, with managed rental space increasing to about 752,707 square meters. PROSPECT REIT will proceed to file information and draft a prospectus with the Securities and Exchange Commission (SEC) and expects the investment to be completed within the second quarter of 2023.