Bangkok, INET Real Estate Leasehold Investment Trust or INETREIT is preparing to increase capital for the first time, with a total value not exceeding 3,200 million baht. Open for subscription of additional trust units to existing trust unitholders who have the right to subscribe. Buy for both natural persons and juristic persons and the general public on 11 – 14 March 2024 at the highest offering price of 9.00 baht per unit.
Mr. Sutthakarn Nanna, Managing Director of INET REIT Management Company Limited, as the REIT manager, revealed that INET Real Estate Leasehold Investment Trust or INETREIT is the first and only REIT in Thailand to enter Invest directly in all Data Center assets, focusing on investing in assets with high growth potential in the digital economy trend. From pushing Thailand to become a hub for world-class data operations centers. Ever since INETREIT was listed on the Stock Exchange of Thailand Has paid returns to trust unitholders regularly every quarter. From 29 July 2021 – 30 September 2
023, a total of 1.8102 baht per unit, a total of 9 times.
In this regard, the dividend payment from the 4th quarter 2023 operating results is set at the rate of 0.2007 baht per unit on March 13, 2024, which will determine the names of trust unitholders who are entitled to receive benefits (Record Date) on February 28. 2024, resulting in the establishment of the trust Will pay a total compensation of 2.0109 baht per unit.
Currently, INETREIT has main assets including the INET-IDC3 Project, Phase 1, Saraburi Province. It is an investment in leasehold rights and has a remaining lease term of approximately 22 years (ending on December 31, 2045) and has leased the said property to Internet Thailand Public Company Limited or INET only and has an agreement to adjust it. The rent increases every year, once a year, at the rate of 2 percent per year, starting from the trust’s establishment in the middle of 2021. From July 29 (the trust’s establishment date) to December 31, 2021, the trust has a total income of 163.94
million baht. and increasing to 397.57 million baht in 2022
While for the first 9 months of 2023, the Trust had a total income of 298.94 million baht and the Trust Preparing to invest in the INET-IDC3 Phase 2 project, which will be fully open for service from the 4th quarter of 2022, focusing on Cloud services in the types of Platform as a Service (PaaS) and Software as a Service (SaaS), which are classified as Cloud services that can create The value is higher compared to the INET-IDC3 Phase 1 project that focuses mainly on Co-location and Cloud services in the category of Infrastructure as a Service (IaaS) due to Server Software and various equipment. It is a newer model than the INET-IDC3 Phase 1 project, so it has better performance and can offer higher value products. As a result of the operation of the INET-IDC3 Phase 2 project in 2022, there was a total income of 265.24 million baht, earnings before interest, taxes, depreciation and amortization (EBITDA) of 165.05 million baht, while for the first 9 m
onths (January – September) of 2023 Total income was 261.08 million baht and EBITDA 179.56 million baht.
Additional investment in the INET-IDC3 Data Operations Center Phase 2 will help increase the REIT’s potential in generating income and good returns for trust unitholders. By estimating the distribution of benefits to trust unitholders after the REIT invests in the additional assets for the first time, based on assumptions in preparing the income statement budget and the distribution of benefits according to the hypothetical situation for the 12-month period, the estimation period from the date 1 Jan. – 31 Dec. 2024 at a rate of approximately 8%.
After the capital increase, the REIT will have a proportion of investment in leasehold (Leasehold) 58% and investment in freehold (Freehold) 42% and the weighted average remaining lease term of the REIT will be increased from 22 years to 54 years. INETREIT will rent out properties at the REIT. There will be additional investment for INET alone for a period of 30
years and there is an agreement to increase the rent every year, once a year at the rate of 2 percent per year.
Mr. Wallachai Vejjivadamrong Deputy Managing Director of Internet Thailand Public Company Limited or INET said that INET as the main sponsor and lessee of assets from the Trust. To be a complete information technology service provider Decades of experience in telecommunications and is a leader in the Thai data center and cloud service business with the number 1 market share in Thailand at 12.74% in the second half of 2022 from the financial analysis report. Investment by Merlins Solutions International Company Limited by INET aims to create rapid growth in the digital economy trend. Through continuous business expansion and investment Create valuable products and services To meet the needs of customers Supports growth potential in the digital age Increase economies of scale (Economies of Scale) to increase efficiency and profitability of INET and create continuous growth.
Miss Warayu Imanothai, Se
nior Director Bank of Ayudhya Public Company Limited, as a financial advisor, said that after raising interest rates by many central banks, they have reached their highest point. and has a tendency to gradually decrease It is considered a good opportunity to invest in the REIT to receive returns from dividends. INETREIT has the following strengths: 1) The REIT will invest in ownership. Therefore, it can generate income for the trust without limitations on the investment period. 2) Assets that the trust has Invest in additional quality and receive international standard certification. and is a new generation of equipment that can offer products and services with higher value. 3) Assets of the Trust It is classified as an industry with high growth potential. 4) The Trust has an opportunity to grow from investing in additional assets in the future and has the Right of First Refusal on assets used to operate the company’s data center business. Internet Thailand PCL.
Including the right to invest in additional as
sets (Right to Invest) in additional racks within the INET-IDC 3 Phase 2 project 5) Internet Thailand PCL. is an anchor tenant with project management expertise and long experience in the data center business; and 6) the trust is managed by a management team with experience and coverage of the data center business. While the offering of trust units is progressing Increase capital Most recently, the request for permission to offer trust units for the first capital increase and the form showing information on the offer for sale of trust units (Filing) have been approved by the SEC Office and are now effective.
Mr. Thitiwat Kornwut, Senior Director Krungsri Securities Public Company Limited, as the underwriter and underwriter, said that INETREIT will offer the first capital increase trust units for sale, totaling not more than 174,476,000 units, divided into offerings to 1) specific groups of the general public. who are the original trust unitholders whose names appear in the trust unitholder registration book
(Rights Offering) on ??February 23, 2024, in a proportion not less than 50 percent of the number of trust units offered for sale this time 2) INET and / or the same group of persons of INET, which when combined with the allocation according to Part 1, will not exceed 25 percent of the number of trust units issued and offered for sale this time, and 3) limited persons and / or the general public and / or Persons at the discretion of the trust unit distributor From the remaining trust units from the offering in Part 1 and Part 2, the subscription right ratio is set at 1 existing trust unit to 0.5287 additional trust units. It will be offered for sale to existing trust unitholders, individuals and juristic persons. and the general public on 11 – 14 March 2024
Individual and juristic person subscribers must pay for additional trust units at the highest offering price of 9.00 baht per unit, with the final offering price The REIT manager will announce it via the Stock Exchange of Thailand’s website later. In the c
ase that the final offering price is lower than the subscription price, The difference will be refunded to every subscriber. And it is expected that the additional trust units will be traded on the Stock Exchange of Thailand within March this year.
Source: Thai News Agency