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Date/Time
20 Jul 2021 09:46:00
Headline
SET News :SET welcomes real estate investment trust "GROREIT" on July 21
Symbol
SET
Source
SET
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                                                                      SET News 52/2021
                                                            July 20, 2021

SET welcomes real estate investment trust "GROREIT" on July 21

Bangkok, July 20, 2021 - The Stock Exchange of Thailand (SET) will list Grande 
Royal Orchid Hospitality Real Estate Investment Trust with Buy-Back Condition on
July 21 under the ticker symbol "GROREIT". It is the real estate investment
trust that invests in freehold right   of the Royal Orchid Sheraton Hotel &
Towers project with asset repurchase condition within five years, making it
Thailand's first REIT buy-back. GROREIT has a market capitalization at its
initial public offering (IPO) of THB 3.15 billion (approx. USD 96.61 million).

SET Senior Executive Vice President Manpong Senanarong said that GROREIT would 
list and start trading on Property & Construction industry, Property Fund &
REITs sector.

This REIT buy-back investment type has been approved by The Securities and 
Exchange Commission (SEC) to offer property developers an option for fund
raising, boost liquidity during the COVID-19 pandemic. GROREIT will be
considered the first REIT buy-back to be listed on SET.

GROREIT offered 315 million trust units at THB 10 each, for a total of THB 3.15 
billion, to institutional investors and general public during June 28 and July
9, 2021. One Asset Management Limited is the REIT manager and underwriter in a
best-effort offering and MFC Asset Management PLC is the trustee.

GROREIT has invested in the Royal Orchid Sheraton Hotel & Towers project, an 
upper-upscale (five-star) hotel class managed by Starwood Hotels & Resorts
Worldwide, Inc. under Marriott International. It is prominently situated at the
bend of Chao Phraya river, with all the rooms facing scenic views, and at the
heart of Bangkok. There are 726 rooms and the facilities that meet international
hotel standards. The REIT has a contract obliging Royal Orchid Hotel (Thailand)
 PCL, the former owner, to repurchase the assets within 5 years.

One Asset Management Chief Executive Officer Pote Harinasuta said GROREIT, the 
first REIT buy-back in Thailand, will invest in the freehold right of the land
plot and building of the Royal Orchid Sheraton Hotel & Towers project worth THB
4.50 billion. The interesting feature of this type of REIT is that the former
owner has the obligation to repurchase the assets at fixed prices and as
scheduled. GROREIT will invest during the period of not more than 5 years as the
former owner has a repurchase option in the 3rd or 4th year and has the
obligation to buy back the assets in the 5th year with the internal rate of
return (IRR) at about 8 percent per annum. However, in terms of investment,
while not being repurchased, the IRR is set at about 6 percent per annum.

GROREIT has steady income from lease contracts of real estate and movable 
assets. Its dividend policy is to pay not more than 4 times a year at no less
than 90 percent of the adjusted net profit of the accounting year. GROREIT's
three major shareholders after the IPO are 1) KGI Securities (Thailand) PCL
(23.89 percent), 2) One Property Plus Fund (1.89 percent) and 3) Kultida
Boon-itt (1.62 percent).

For more information on GROREIT, please see its prospectus at the Securities and
Exchange Commission's website at www.sec.co.th, and the trust's general
information at www.one-asset.com, as well as www.set.or.th.

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