SPRIME Growth Property Fund Management Company Limited announced that the extraordinary meeting of SPRIME unit holders on February 15, 2022, approved the first additional investment for the SPRIME Trust to invest in three projects valued at no more than 7.283 billion baht. The trust is confident that Grade A CBD buildings will strengthen and diversify the trust, securing strong tenants who have signed three-year contracts despite the COVID crisis, which will increase returns for unit holders by over 7% in the first year after the additional investment. The total asset value of the trust is expected to expand from 5.889 billion baht as of September 30, 2021, to over 12 billion baht following the investment in the Singha Complex, Metropolis, and Sun Tower Retail.

Mr. Ketukorn Khemthorn, Managing Director of SPRIME Growth Property Fund Management Company Limited, stated that the extraordinary meeting of SPRIME unit holders approved the first additional investment, which includes (1) leasing rights for retail space in the Sun Towers project for 27 years, (2) leasing rights for land, office space, and commercial space in the Singha Complex project for 30 years, and (3) leasing rights for land and the Metropolis building for 23 years from Max Future Co., Ltd. and Singha Property Development Co., Ltd., subsidiaries of Singha Estate Public Company Limited, as well as from Singha Estate Public Company Limited itself. The total investment value for these three projects will not exceed 7.283 billion baht.

“The unit holders approved a capital increase by issuing and offering no more than 663 million trust units, which will affect the distribution per unit (DPU) after the investment in the Sun Towers retail space, increasing by no less than 0.015 baht. If the trust invests in all three additional projects, the DPU will be no less than 0.632 baht per unit, representing an increase of over 7% in returns in the first year after the additional investments in all three projects,”

The trust manager is confident that the properties to be invested in are all competitive projects with high occupancy rates. The Singha Complex is a large Grade A office building with LEED Gold certification and retail space, serving as the flagship asset of Singha Estate Public Company Limited, located at the Asoke-Phetchaburi intersection, directly connected to the MRT Phetchaburi station and close to the Airport Link Makkasan station. The trust will invest in a total rental area of 47,756 square meters, with tenants being leading multinational companies such as Shopee, Amazon Web Services, and Unicharm. The Singha Complex is considered a market leader in the Asoke-Phetchaburi area in terms of premium image, contributing to an average rental rate currently exceeding 950 baht per square meter. The Metropolis building, a medium-sized office building of 13,677 square meters, is located near the BTS Phrom Phong station and is a top choice for leading multinational companies seeking premium buildings that emphasize privacy and modern security systems, which are key selling points for the Metropolis building. It has tenants who have successfully navigated the COVID crisis with three-year contracts, such as Accor Group, EVA Air, Nokia (Thailand), and Thai Solar Energy. With medium-sized tenants occupying about 1,000 square meters, the average rental rate can exceed 900 baht per square meter.

“The key advantage of both buildings is their location in the Asoke-Phetchaburi and Phrom Phong zones, which have limited new supply in the future while demand continues to rise, and rental rates are still lower than in the Central CBD. This gives us confidence that there are still good growth opportunities. After the COVID-19 situation, business operations will improve, making it an opportune time for the trust to invest in new properties with potential to strengthen the portfolio, creating resilience through a diverse tenant base, building types, and locations to provide sustainable returns for unit holders,”

After the unit holders approved the first capital increase, the SPRIME Trust is preparing to submit a request for the sale of trust units, draft a prospectus, and related documents to the Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand (SET). The review period will depend on the approval process of the SEC and the SET.

About Singha Estate

Singha Estate is a leading property development and investment company committed to conducting business responsibly towards society, adhering to the philosophy of sustainable growth, maintaining a balance between economic, social, and environmental growth. The company aims to achieve balanced and diverse growth through investments in retail space, office leasing, hotel businesses, and residential projects, focusing on high-potential investments both domestically and internationally to become a global investment and holding company with a strong financial position that delivers sustainable value to all stakeholders.

Singha Estate Public Company Limited

123 Sun Tower B, 22nd Floor, Vibhavadi Rangsit Road, Chom Phon, Chatuchak, Bangkok 10900

Phone: +66 (0) 2050-5555 www.singhaestate.co.th