REIT Benefit

Benefits of REIT

For Business operators

  • A fundraising alternative that uses real estate which generate returns in a form of rent to raise funds from investors to further invest and develop new projects.

For Investors

  • Enjoy long-term returns and low fluctuation of price
  • Able to invest in a wider range of real estates managed by real estate investment and management experts
  • No need to inject large investment as is normally required in a direct investment in real estate 
  • Receive 90% of the adjusted net profit

For REIT

  • Able to invest in varied types of real property, including real property abroad
  • Able to use leverage to invest and/or develop real property for higher returns
  • Able to partially develop its own real property
  • Allow a company with expertise in managing real estate to become REIT Manager
  • Adheres to international standard

Assets which REIT can invest in

All types of real estates such as office buildings, shopping centers, and warehouses,. However, there must be no disputes that have a significant impact on utilization of the real estate
Real estate located in the country and/or abroad
Real estate which is ready to produce benefits of ≥ 75% of the value of the total unit offered including loan proceeds (if any). The excess can be used to invest in other assets such as government bonds and bank deposits
Real estate under construction. The investment to be used to develop the real estate until completion must not exceed 10% of the trust's total asset value and must be able to show that there is sufficient working capital for the development without jeopardizing the trust's viability
The acquired real estate must have a total value of at not less than THB 500 million
The REIT which leases real estate to anyone suspected of using it for unethical or illegal business
* Source: The Stock Exchange of Thailand