S Prime Growth Leasehold Real Estate Investment Trust (SPRIME) has initiated its first additional investment in quality assets, specifically in the 'Singha Complex and Sun Towers Retail' projects, with a total investment not exceeding 6.113 billion baht. This investment focuses on premium mixed-use projects located in the central business district, close to both the BTS and MRT stations. The projects boast a high rental rate, with a diverse range of tenants and continuous contract renewals. This investment will elevate SPRIME to become a leading office trust in Thailand, pushing the total asset value beyond 10 billion baht. The overall demand for quality office buildings remains strong, particularly for mixed-use projects that support hybrid working models, featuring modern, clean, and safe retail spaces. This will benefit from the economic recovery and the easing of the COVID-19 situation, ensuring continuous revenue growth and raising the first-year return estimate to no less than 0.632 baht per unit.

Mr. Archaweech Singhsuwan, Managing Director of S REIT Management Co., Ltd., as the manager of the SPRIME trust, revealed that SPRIME has moved forward with its first additional investment in new assets to enhance revenue generation and continuous growth for the trust. This includes 1) an investment in the leasehold of Singha Complex, which has approximately 47,625 square meters of rental space for a period of 30 years, and 2) the leasehold of retail space in Sun Towers, with remaining common areas from the trust's initial investment and storage space totaling approximately 2,760 square meters for a period of 26 years. The total investment will not exceed 6.113 billion baht, which will increase the total number and value of assets in the SPRIME trust to over 10 billion baht, positioning SPRIME as a leading office trust in Thailand focused on delivering consistent returns to unit holders.

The two projects mentioned are high-quality developments with continuous growth potential from Singha Estate Public Company Limited, showing impressive occupancy rates and performance even during the COVID-19 pandemic. The 'Singha Complex' is located in the central business district at the intersection of Asoke Road and New Petchburi Road, serving as a flagship project for Singha Estate that commenced operations in 2018. It features Grade A office space with complete amenities and retail areas akin to a lifestyle mall, designed and constructed to LEED Gold standards, emphasizing sustainability, energy efficiency, and environmental friendliness. This premium mixed-use complex is modern and stands out as a landmark, catering to various lifestyle needs and directly connected to the MRT Phetchaburi station, as well as being close to the Airport Rail Link at Makkasan station. The occupancy rate has consistently increased since its opening, reaching 94.34% as of March 31, 2022, with an average rental rate of 957 baht per square meter per month. It hosts leading domestic and international tenants across diverse sectors, including online businesses, technology products and services, and healthcare services, all of which are in booming sectors experiencing rapid growth.

The 'Sun Towers Retail' is located in the Sun Towers building, situated in a key business area near the Lat Phrao intersection on Vibhavadi Rangsit Road, a crucial connection point for business districts, retail areas, leading residential condominiums, and various public transport systems, including the MRT Chatuchak and BTS Mo Chit stations, as well as expressway access. This project in northern Bangkok has shown outstanding performance, with an occupancy rate of 96.50% as of March 31, 2022, and an average rental rate of 1,049 baht per square meter per month.

“We are confident in the potential of the assets for additional investment in both projects, as evidenced by the latest occupancy rates in the first quarter of this year remaining high. This will enhance the potential and returns for unit holders, with the estimated distribution (dividend) in the first year after this additional investment expected to be no less than 0.632 baht per unit,” Mr. Archaweech stated.

Ms. Thitima Rungkwansiriroj, Chairwoman of S REIT Management Co., Ltd. and CEO of Singha Estate Public Company Limited, as the Sponsor of SPRIME, stated, “Despite the challenges faced by the office building business during the COVID-19 pandemic, the potential of the location, consistent management of the customer portfolio, modernization of the assets, and the introduction of new business models to meet the changing needs of tenants have resulted in occupancy rates of Singha Complex and retail space in Sun Towers reaching 94.34% and 96.50%, respectively. This inclusion of both assets into SPRIME marks the second time following the success of the long-term lease of office space in Sun Towers to SPRIME in early 2019, supporting SPRIME's ongoing investment strategy in potential office projects and strengthening SPRIME as one of the largest office investment trusts in the country.”

Mr. Prakob Pienjareon, Executive Vice President, Head of Large Corporate and Investment Banking Clients, and Acting Head of Investment Banking at Krungsri Bank Public Company Limited, as a financial advisor, stated, “SPRIME has consistently performed well and provided returns to investors. Since its establishment on January 17, 2019, until March 31, 2022, it has distributed benefits to unit holders continuously totaling 1.9849 baht per unit. Considering the distributions over the last four quarters, which were at 0.6000 baht per unit, this represents a distribution rate of approximately 8.7% based on the market price of SPRIME as of June 15, 2022. The first additional investment in the lease of Singha Complex and retail space in Sun Towers enhances the operational performance and profitability of the trust, strengthening the asset portfolio of the trust.”

Mr. Kritsakorn Nontanakhon, Senior Director, Head of Capital Markets at Krung Thai Bank Public Company Limited, as a financial advisor, stated, “The first additional investment of SPRIME, with a total investment not exceeding 6.113 billion baht, will be financed through institutional loans not exceeding 2.4 billion baht, with the remainder coming from the offering of trust units not exceeding 663 million units. This includes 1) allocating at least 50% of the total units issued and offered in this capital increase to existing unit holders listed in the trust register based on their unit holdings (Preferential Public Offering), 2) allocating up to 20% of the units issued and offered in this capital increase to Singha Estate Public Company Limited and/or related parties (Private Placement), and 3) allocating the remaining units for sale to institutional investors and special subscribers and/or the general public.”

From the above information, SPRIME, as a leading trust of Singha Estate Public Company Limited, represents an attractive investment option for those seeking to invest in a trust that provides consistent long-term returns. SPRIME has demonstrated strong performance and has been able to continuously distribute benefits to unit holders. The first capital increase to invest in both of the aforementioned projects will result in SPRIME diversifying its investment in various types of office assets, covering both Grade A and Grade B buildings, all located in high-potential areas of Bangkok, with high occupancy rates and improved returns for unit holders.