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Thailand Real Estate Investment – Developers Find a New Way to Raise Capital

By on Oct 11, 2013 in Property News

Developers Find a New Way to Raise Capital

A number of leading developers plan to issue property funds worth more than Bt30 billion combined, in order to raise capital to support their business expansion over the remainder of this year and during 2014.

When added to the property funds already issued this year, nearly Bt100 billion worth of such funds will have been issued in total.

Raising funds via the capital market has the advantage of reducing developers’ financial costs when compared with borrowing from commercial banks or the issuance of debentures, according to a survey by The Nation and information from the Securities and Exchange Commission.

This is why some developers have expanded their investment in rental-income businesses such as hotels, office buildings and retail, which are the sources for issuing property funds – to be upgraded to real-estate investment trusts (REITs) next year – with a view to raising capital in the future.

While property funds/REITs are means of raising low-cost capital for developers, some listed property firms are interested in developing projects that will directly provide recurring income for the company in the future.

Source | The Nation 11 October 2013 http://bit.ly/19lXDKW

 

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