Bhiraj Office REIT (BOFFICE) to be Launched for Investment in Growth-Driven High-End Mixed-Use Commercial Complex in Early Sukhumvit Area

Stocks and Financial Services Press Releases Thursday November 23, 2017 13:56
Bangkok--23 Nov--MT Multimedia

BHIRAJ BURI GROUP, a property developer and management with a diversified asset portfolio, introduced Bhiraj Office REIT (BOFFICE), which would invest in leasehold spaces in the BHIRAJ TOWER at EmQuartier, a grade-A office tower designed for use as a mixed-use commercial complex and sharing The EmQuartier shopping centre's high-growth-potential location in early Sukhumvit area. Its position as a high-end property with high-growth potential contributes to an outstanding occupancy rate.

Mr. Pitiphatr Buri, Executive Director of BHIRAJ BURI GROUP, a property developer and management with a diversified asset portfolio, revealed that for the past 30 years the Group has always recognised the value of, and focused its efforts on, high-end commercial properties in the office building segment that suit local lifestyles and raise the living-quality of people at and around the project , through mixed-use commercial complex designs intended to promote a better work-life balance, which have led to its past developments' receiving warm responses from tenants/customers and to its sustainable growths.

The BHIRAJ TOWER at EmQuartier is one of such high-end mixed-use commercial complex , being a grade-A office building situated in the central business district of early Sukhumvit area, connected by direct link to Phrom Phong BTS Station and offering facilities of a mixed-use commercial complex that shares its location with The EmQuartier shopping mall. These characteristics have drawn significant interest among tenants.

The BHIRAJ TOWER at EmQuartier is managed by Bhiraj Management Co., Ltd. a property management firm with high-profile experience and expertise in management of properties. Properties managed by the firm include Bangkok International Trade & Exhibition Centre (BITEC), UBC II, BHIRAJ TOWER at BITEC, etc. This fact has also contributed to greater recognition of the property's quality among existing tenants.

BHIRAJ BURI GROUP is working to establish Bhiraj Office Leasehold Real Estate Investment Trust (or Bhiraj Office REIT) to invest in leasehold spaces within BHIRAJ TOWER at EmQuartier office-building project and all connected areas for a term of approximately 26 years and 9 months beginning the date of registration of a long-term lease on selected spaces within the office building and expiring 30 September 2044. The inception is pending approval by the Office of the Securities Exchange Commission (SEC).

Mr. Atthakorn Netneramitdee, Managing Director of Bhiraj REIT Management Co.,Ltd. the REIT Manager, added that the BHIRAJ TOWER at EmQuartier is a high-end office-building project that is likely to generate stable income and high growths. Thanks to its position as a grade-A office building in early Sukhumvit area, it has attracted strong interests from tenants since its inauguration in March 2015. As of 30 September 2017, its occupancy ratio stood at 98.7% (of the total lease area of approximately 49,700 sq m). Its tenants are of strategically diverse backgrounds, as they include (without limitation) small firms and large multinational corporations in different industries, eg consumer products, e-commerce, pharmaceuticals, etc, which reduces the risks associated with the income situation of a particular tenant and enhances income stability and the opportunity to raise rental rates in the future, he said.

Bhiraj Office REIT's initial target assets would be selected long-term leasehold spaces (94,853 sq m) within the BHIRAJ TOWER at EmQuartier, including office spaces for rent, parking spaces, common areas for the offices and spaces for connected utility services.

Mr. Taweechai Tangthanasup, Head of Investment Banking, Tisco Securities Company Limited, Financial Advisor and Underwriter, stated that Bhiraj Office REIT would invest up to THB 6.605 billion of its funds, which would be raised by issuing REIT shares worth up to THB 5.153 billion and securing long-term loans worth up to THB 1.750 billion. Bhiraj REIT Management Co Ltd would serve as REIT Manager, Bhiraj Management Co Ltd as Property Manager, Krung Thai Asset Management Public Company Limited as Trustee and Tisco Securities Co Ltd and Kasikornbank Public Company Limited as Financial Advisors. SEC has begun the process of examining the application and filing for Bhiraj Office REIT since 9 November 2017, said he.

Mr. Sawit Srisaranyapong, Head of Investment Banking Department, Kasikornbank Public Company Limited, Financial Advisor and Underwriter, commented that, due to the constantly high office occupancy ratios, property funds and real estate investment trusts (REITs) that invest in office buildings in Thailand are drawing a large crowd of investors, and that institutional investors are expressing great enthusiasm about them. He noted that, according to audited hypothetical financial report and data for the 12-month period begining 1 January 2018 and 31 December 2018, Bhiraj Office REIT's first year yield (computed from forecasted dividends and capital reductions) would be approximately 7.10%.

Latest Press Release

SET welcomes restaurant operator Zen Corporation Group on February 20

The Stock Exchange of Thailand (SET) will list Zen Corporation Group pcl – a leading operator of restaurant brands in Thailand – on February 20, under the ticker symbol "ZEN". The company has a market capitalization at its initial public...

Photo Release: EXIM Thailand Holds FX Risk Management Seminar Phase 2 To Promote FX Risk Hedging Tools for SME Exporters in the Northeast

Mr. Chana Boonyachai (center), Executive Vice President of Export-Import Bank of Thailand (EXIM Thailand), recently welcomed Mrs. Thatsanee Tangpattanasiri (right), Director, Northestern Regional Office, Bank of Thailand (BOT), and Mr. Ranon Keowsuddhi...

Frasers Property Thailands Revenue Increased 341% to 2.577 Billion Baht and Net Profit Rose 190% to 684 Million Baht in Q1/2019

Revenue totalled 2.577 billion baht, an increase of 1.993 billion baht or 341% year-on-year, while net profit totalled 684 million baht, a growth of 190% year-on-year. Embarked on a "Total Dimension" strategy to become leading provider of smart...

Photo Release: EXIM Thailand Visits Xayaburi Hydroelectric Power Project

Mr. Nopporn Thepsithar (fifth left), Chairman of the Board of Executive Directors, Export-Import Bank of Thailand (EXIM Thailand) and Dr. Narongchai Akarasanee (center), former Minister of Energy, recently visited Xayaburi Hydroelectric Power Project...

Thailands Promotion of Advanced Technology and Eco-system Development Enables Local Producers to Fly Higher

Thailand has been experiencing a gradual shift from a manufacturing to a high-value manufacturing economy after the country has put all its efforts into promoting the use of advanced technology, science, and innovation in parallel with the development of...

Related Topics