CP Land is making an IPO later this year of investment units worth nearly THB10bn in CP Tower Growth Leasehold Property Fund (CPTGF).
The fund will invest in 30-year leasehold interests in landed property and office/shopping centre buildings in three CBD locations, namely CP Tower I (Silom), CP Tower II (Fortune Town) and CP Tower III (Phayathai), and will become Thailand's largest property fund that invests in both office buildings and shopping centres.
According to KTAM, the fund manager, the three assets have high growth potential, thanks to their downtown locations, and are managed by CP Land, a prestigious property firm with 25 years of experience in the industry.
Somkiat Ruentongdee, executive vice president of CP Land, says: “CP Tower Growth Leasehold Property Fund will be a property fund that invests in both office building and shopping centre projects, allowing shared customer bases and offering great investment diversification to the investors. With a size of about THB10bn, the fund will be Thailand's largest property fund that invests in both office buildings and shopping centres. Its establishment is currently pending approval by the Office of the Securities Exchange Commission.”
Chavinda Hanratanakool, senior executive and vice president, property fund and private fund management, Krung Thai Asset Management (KTAM), says: “The fund will invest in 30-year leasehold interests in landed property, office buildings and shopping centres with an aggregate lease space of 131,915 sq m in Silom, Ratchadaphisek-Phra Ram 9 and Phayathai. The strategic locations of the assets offer considerable convenience in transportation, including direct access to the BTS, MRT and Airport Rail Link train networks, and will contribute greatly to future income stability and growth as well as satisfactory dividend yields.
"A unique strength of CPTGF will lie in the facts that the office building tenants will also be patrons of the shopping centres, which will ensure constant revenue, and that the shopping centres, which house food vendors, banks and retail stores, will in turn please the existing office building tenants and help attract new ones. The rental revenue from the office buildings and from the shopping centres will be boosted by each other. This makes us confident in the fund's prospects and revenue growths.”