Unit holders have approved the second capital increase for the PROSPECT Trust, allowing for the sale of up to 310 million units to further invest in three projects in the form of ownership and leasehold rights for land, factory buildings, and high-quality warehouses, valued at no more than 3.35 billion baht. This will raise the total asset value of the trust to over 8.7 billion baht.

Prospect REIT Management Co., Ltd., as the trust manager, announced that the first meeting of the PROSPECT Trust unit holders for the year 2024 approved the second capital increase to invest in additional assets for the third investment phase, which includes a total rental area of 221,678 square meters as follows:

1. Bangkok Free Trade Zone 1 (BFTZ 1) on Bangna-Trad Road, Km 23, investing in leasehold rights for part of the land and building for a period not exceeding 15 years, with a rental area of approximately 158,315 sq.m.

2. Bangkok Free Trade Zone 2 (BFTZ 2) on Theparak Road, investing in leasehold rights for part of the land for a period not exceeding 26 years, and investing in ownership of part of the building and related properties, with a rental area of approximately 12,481 sq.m. When combined with the area already invested in Bangkok Free Trade Zone 2, the PROSPECT Trust will be considered to have invested in the entire BFTZ 2 project.

3. Bangkok Free Trade Zone 3 (BFTZ 3) on Bangna-Trad Road, Km 19, investing in ownership of part of the land, building, and related properties, with a rental area of approximately 50,882 sq.m. This will increase the total rental area managed by the PROSPECT Trust to 514,010 square meters, up from approximately 292,332 square meters, and after the additional investment, the freehold area will account for 31%.

Ms. Oranong Chaitong, CEO of Prospect REIT Management Co., Ltd., as the trust manager, stated, “This additional investment will enhance revenue sources and generate returns for unit holders, as all three projects invested in by Prospect Development, the main sponsor, have the potential to grow with every business trend. They feature high-quality buildings and Free Zone areas that offer benefits to attract operators to establish production bases. Additionally, the Bangna-Trad area is a strategic location for the industrial and logistics sectors, close to the airport and ports, with a large skilled labor force. The demand for warehouse and factory rentals in this area is consistently high. This investment also diversifies tenant risks across various industries and increases the stability of the PROSPECT Trust by increasing the proportion of freehold investments, which will rise to 31% after the additional investment. We believe that expanding asset value will strongly translate into good returns for unit holders in the long term.”

After the unit holders approved the capital increase, the PROSPECT Trust will proceed to file a registration statement and draft a prospectus with the Securities and Exchange Commission (SEC) to request permission to offer trust units. It is expected that the offering of trust units and the investment will be completed by early 2025.

For more information and updates, please visit https://www.prospectreit.com/th/home.