AIMIRT Completes Merger, Transfers 2B Assets
On June 7, 2024, Mr. Amorn Chulalaksananukul, Chief Executive Officer of AIM REIT Management Company Limited, as the REIT manager of the AIM Industrial Growth Real Estate and Leasehold Real Estate Investment Trust (AIMIRT), revealed that on June 6, 2024, AIMIRT Trust successfully received the transfer of assets and liabilities from Pinthong Industrial Park Property Fund (PPF). This transfer was in exchange for the assets and liabilities of the PPF Mutual Fund that have been transferred to the AIMIRT Trust.
The REIT manager issued 196,019,335 trust units of AIMIRT Trust to the PPF Mutual Fund along with cash in the amount of 168,382,500 baht, according to the swap ratio of investment units of the PPF Mutual Fund with trust units of the AIMIRT Trust. The swap ratio was 1 investment unit of the PPF Mutual Fund to 0.8731 trust units of the AIMIRT Trust, along with cash in the amount of 0.7500 baht per 1 investment unit of the PPF Mutual Fund. This marks the successful closing of the deal for merging and converting the PPF Mutual Fund into the AIMIRT Trust as per the plan.
This transaction is further proof of the success of AIMIRT Trust as the first and largest independent REIT in Thailand, with an open investment policy that allows for the objective selection of potential assets to create the best returns for investors. AIMIRT Trust has stood the test of time from its inception to the present, starting with an IPO of 2,140 million baht in 2018.
Until now, after the successful merger of the PPF Mutual Fund, the total asset value has grown to 13,000 million baht, with the size of the trust fund expanding qualitatively. As a result, AIMIRT Trust has gained greater strength and potential in many areas.
Mr. Jarasrit Atthawetayaworawut, Managing Director of AIM REIT Management Company Limited, stated that from the beginning, they saw the potential of PPF Mutual Fund's assets and recognized the opportunity to save on fees and taxes in converting real estate mutual funds, a benefit provided by the government that will end in 2024. Throughout the past year, the AIMIRT REIT Manager has been committed to making this deal successful as planned, despite challenges in many areas. They believe this will be beneficial to both the unitholders of AIMIRT Trust and the broader investment community.
Including unitholders of the PPF Mutual Fund, the amalgamation of PPF Mutual Fund assets helps reinforce the strengths of AIMIRT Trust in many areas, especially in terms of the distribution of the property portfolio in the EEC zone and increasing the freehold proportion from 60% to 67%. This will definitely help enhance the long-term stability of the REIT's income and returns. Additionally, it is considered another important strategic move in terms of business alliance with the Pinthong Group, professionals who will assist in further managing the property.
Moreover, for unitholders of the PPF Mutual Fund, moving to the REIT platform unlocks many constraints, one important constraint being the opportunity for growth through additional investment in potential assetssomething that real estate funds currently cannot do. This transition will increase the opportunity to earn income and reduce the risk associated with investing in a single type of property.
Mr. Thanadet Opasayanon, Co-Managing Director of AIM REIT Management Company Limited, added that the advantages and benefits obtained from the PPF Mutual Fund merger transaction through the conversion of PPF Mutual Fund into AIMIRT Trust are clearly reflected in the strong support from investors on both sides. With a unanimous vote of approval100% of votes from unitholders of AIMIRT Trust and 99% from unitholders of PPF Mutual Fundit was very challenging to balance the interests of unitholders on both sides.
In addition to the advantages of growth and diversification of the property portfolio as mentioned above, the merger of PFF Mutual Fund assets also allows AIMIRT Trust to better structure its capital. This will create stability in the payment of benefits to unitholders of AIMIRT Trust as well.
In the next step, PPF Mutual Fund will commence distributing trust units of AIMIRT Trust along with cash to unitholders of PPF Mutual Fund whose names appear in the unitholder register on the closing date of the transfer suspension register. Additionally, it is expected that the newly issued trust units of AIMIRT Trust will commence trading on the Stock Exchange of Thailand on June 12, 2024. Furthermore, the investment units of PPF Mutual Fund will be delisted from being listed securities on the Stock Exchange of Thailand on the same day.
Credit News: https://www.prachachat.net/finance/news-1581644
