PROSPECT REIT, the real estate investment trust focusing on logistics and industrial properties, is set to make its third investment, amounting to no more than 3.35 billion baht, in warehouses and ready-built factories, as well as Built-to-Suit buildings in Bangkok Free Trade Zones 1, 2, and 3, located in the Bangna-Trad area, which is a key logistics hub in the country. The trust emphasizes its focus on investing in industrial assets within the Free Zone and properties with high rental demand. Currently, the average occupancy rate of the invested properties at the end of Q3 2024 is over 98%, showcasing an impressive 12-month return of 10.2%.

Ms. Oranong Chaitong, CEO of Prospect REIT Management Co., Ltd., as the trust manager, stated that PROSPECT REIT is a leading industrial trust focused on investing in rental warehouses and factories. Currently, the invested properties are located in the Bangna-Trad area of Samut Prakan province, which is in a highly potential location and a significant logistics center in the country, allowing for quick connections to ports, airports, and various industrial estates. The main assets include both freehold and leasehold forms in four projects: Bangkok Free Trade Zone 1, Bangkok Free Trade Zone 2, Bangkok Free Trade Zone 3, and X44 Bangna Km. 18, with a total rental area of approximately 292,332 square meters on about 294 rai of land, and tenants include leading companies from various industries, ensuring stable income for the trust. Currently, the main assets have an average occupancy rate of 98% at the end of Q3 2024, reflecting strong demand for warehouse and factory space. Additionally, PROSPECT REIT has a history of consistently good returns, having declared a total distribution of 3.8520 baht per unit since its establishment in 2020, resulting in a 12-month yield of 10.2% compared to the unit price of 8.45 baht at the end of Q3 2024.

Recently, PROSPECT REIT is preparing for its third investment, valued at no more than 3.35 billion baht, which will involve investments in freehold and leasehold rights in warehouses and ready-built factories, including Built-to-Suit buildings in three projects, which are the same projects currently invested in, totaling approximately 221,678 square meters of rental space, including: (1) Bangkok Free Trade Zone 1, Bangna-Trad Km. 23, which will invest in leasehold rights for land and building for a period of no more than 15 years, with approximately 158,315 square meters of rental space; (2) Bangkok Free Trade Zone 2, Theparak Road, which will invest in leasehold rights for land for a period of no more than 26 years and in freehold rights for buildings, with approximately 12,481 square meters of rental space; and (3) Bangkok Free Trade Zone 3, Bangna-Trad Km. 19, which will invest in freehold rights for land and buildings of the project, with approximately 50,882 square meters of rental space. After this additional investment, PROSPECT REIT will have a total rental area increased by approximately 76% to 514,010 square meters.

This additional investment has several highlights, including: (1) High potential assets: (1.1) The location is in a key logistics center of the country, near Laem Chabang Port, Bangkok Port, Suvarnabhumi Airport, Don Mueang Airport, and several industrial estates. It is also situated in an industrial zone, allowing tenants to utilize the space efficiently and flexibly for both factory and warehouse operations, resulting in high demand for rental space. Additionally, there is potential for positive outcomes from the trend of relocating production bases from China to the ASEAN region in response to trade war impacts. (1.2) Tax benefits for tenants, as parts of Bangkok Free Trade Zone 1 and Bangkok Free Trade Zone 3 are designated as Free Zones, providing tax incentives for operators in those areas. (1.3) High-quality buildings designed to suit the needs of various tenants, equipped with complete utilities. (1.4) Managed by Prospect Development, which has extensive experience and expertise in managing rental warehouses and factories, with over 18 years of experience in developing and operating Bangkok Free Trade Zone projects. Currently, they manage 7 projects with a total area of approximately 1.04 million square meters, and they also provide a variety of comprehensive services, including coordination with government agencies and consulting for clients in obtaining necessary permits.

(2) Increasing the proportion of investment in freehold assets to 31.4% from the current 29.2% of the appraised asset value, which will enhance the stability of the trust's income stream.

“This capital increase will enhance the potential of PROSPECT REIT by increasing the overall asset size, making the trust larger and more stable, as well as improving the investment structure between freehold and leasehold investments. This will help increase the potential for generating income and returns for unit holders, making it a great opportunity for investors looking for a high-growth potential trust,”Ms. Oranong stated.