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New property fund pays 7% minimum

By on Jun 28, 2012 in Property News

Quality House Hotels and Residences (QHHR), a new property fund owning three property projects, will offer a guaranteed minimum return of 7-8% for the first three years of investment, with a plan to list late next month.

The fund will manage assets developed by Quality Houses Plc (QH), the developer of the Centre Point Hotels and Residence and service apartment projects, located in the central business district.

Its properties include the Center Point Center Hotel & Residence Petch Buri on Phetchaburi Road, the Center Point Hotel & Residence Sukhumvit on Sukhumvit Road and the Center Point Hotel & Residence (Langsuan) on Lang Suan Road.

QHHR, with assets totalling 3.36 billion baht, will take subscriptions from July 5-13 with a minimum investment of 10,000 baht. It also plans to list on the Stock Exchange of Thailand next month.

Suchai Sutasthamkul, the chief executive of CIMB Securities, the financial adviser for the IPO, said the three hotels are located in prime locations, with an occupancy rate of 70-80% in the past three years. The Phetchaburi and Sukhumvit projects are freehold, while the Lang Suan project is leasehold for 14 years.

As the fund supporter, QH said apart from the minimum guaranteed return, it expects a minimum rental revenue for the second half 2012 at 143.9 million baht, 266.1 million for 2013, 278.3 million for 2014, and 146.7 million baht the first half of 2015.

He said the Centre Point is a strong brand for property management, especially services apartments and hotels, for over 20 years. The group is ranked as the country’s leading service apartment chain and the largest in terms of asset under management of 2,500 units from 11 projects.

Veena Lertnimitr, a first senior vice-president of Siam Commercial Bank, a leading underwriter of QHHR, said service apartments and hotels downtown should continue to grow over the next few years, buoyed by more travel after the Asean Economic Community is formed in 2015.

SCB also has three or four more property funds to be listed on the SET this year, said Ms. Veena.

Suwanna Buddhaprasart, a senior executive vice-president of QH, said the company expects to receive 700-800 million baht from QHHR’s sale. Proceeds from the sale will be booked in the third quarter and drive up full-year net profit growth to 70% from an earlier forecast of 50%.

Source : Bangkok Post 28 June 2012 by Nuntawun Polkuamdee

2 Comments

abijan

This report is a direct copy of Nuntawun Polkuamdee’s real estate report in the Bangkok Post June 28th 2012 but no mention is made of this ?

Bangkok Condo Editor

Thank you for your comment and apologize for not completing the source information. However, we have edited it by adding Khun Nuntawun and published date to the article.








 

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