Bhiraj Office REIT (BOFFICE) first trading day at SET on 23 January with potential office building project in High-End Mixed-use Commercial Complex at the center of Sukhumvit business district

Tuesday 23 January 2018 10:45
Bhiraj Office Leasehold Real Estate Investment Trust or Bhiraj Office REIT (BOFFICE) was first traded in the Stock Exchange of Thailand (SET) on 23 January which was well received by both intuitional and retail investors at an initial public offering price of 10 Baht per unit. The highlights are the quality as a Grade A office building that has been designed as a Mixed-use Commercial Complex, the location situated at the same place as the EmQuartier shopping complex in the center of the Sukhumvit business district, and its high growth potentials from outstanding rental rates.

Mr.Attakorn Netneramitdee, Managing Director of Bhiraj REIT Management Company Limited, the REIT Manager, revealed the Bhiraj Office REIT (BOFFICE) was first traded in the Stock Exchange of Thailand (SET) on 23 January after subscribe IPO of 10 Baht per unit, which well received by institutional and retail investors because they confidence Bhiraj Office REIT will generate a suitable returns from the high growths potential.

Bhiraj Office REIT (BOFFICE), for its initial investment, invests in long-term leasehold right of the BHIRAJ TOWER at EmQuartier. The leasehold right covers office area for rent, parking area, common office area and utility system area for the project – totaling 94,853 square meters. The leasehold period is approximately 26 years 9 months, starting from the expected date to invest of 1 January 2018 until ended on 30 September 2044.

The BHIRAJ TOWER at EmQuartier is one of the high quality projects developed by BHIRAJ BURI GROUP, who emphasizes on creating values through developing quality projects. BHIRAJ TOWER at EmQuartier is adhered to the vision of creating outstanding Grade A office building in CBD of Sukhumvit area that has direct connection to the BTS sky train, Prompong station. Additionally, as a Mixed-use Commercial Complex that is located in the same area as the EmQuartier shopping center, BHIRAJ TOWER at EmQuatier is situated in the middle of variety of convenient facilities. With those prominences, BHIRAJ TOWER at EmQuartier has continuously gained attractions from many tenants since its launch in March 2015, allowing the project to reach an occupancy rate at the very high rate of 98.7% of its total office rental space approximately 49,700 square meters, as of 30 September 2017.

Mr. Taweechai Tangthanasup, Head of Investment Banking, TISCO Securities Company Limited, Co-Financial Advisor and Co-Lead Underwriter, said that the asset in which Bhiraj Office REIT (BOFFICE) will invest is a quality project that is expected to generate attractive revenue with high growth potential, considering its high quality as Grade A office building, high quality tenant portfolio ranging from small businesses to large multi-national corporations with well diversified industry of tenants, for example, consumer goods, E-Commerce, and pharmaceutical companies etc., allowing the project to achieve stable performance without dependency on a particular group of tenants. Given aforementioned strengths and its prime location, the rental rate and performance of the asset is likely to consistently grow in the future, making this offering a good opportunity of the trust unitholders of Bhiraj Office REIT to gain consistent returns on their investment in a long-term period.

Mr. Sawit Srisaranyapong, Chief of Investment Banking Business Division, Kasikornbank Public Company Limited, Co-Financial Advisor and Co-Lead Underwriter, said that BHIRAJ TOWER at EmQuartier is one of the high growth potential projects under BHIRAJ BURI GROUP. It is operated by Bhiraj Management Company Limited, a property management company with extensive experience and expertise from operating several real estate projects, for example, Bangkok International Trade and Exhibition Centre (BITEC), United Business Centre II (UBC II), and BHIRAJ TOWER at BITEC. With such well-managed, it is another key factor that the BHIRAJ TOWER at EmQuartier has been well recognized from all tenants.