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Devonshire Capital
June 2005
Devonshire Capital Announces Successful launch
of Thai Industrial Fund 1: TIF1
Devonshire Capital is pleased
to announce the successful launch and listing of a THB 505 million
industrial property fund - Thai Industrial Fund 1 ("TIF1")
The fund has been established as a Type 1 Property
Fund and has been listed on the Stock Exchange of Thailand with
the purpose of investing in commercial and industrial assets ranging
from factories and warehouses to large corporate distribution centers.
The fund provides investors with an above average
net yield (estimated on current occupancy levels) of above 8%, as
well as giving unit holders future capital appreciation based on
future sales of assets.
The fund will continue to purchase commercial
and industrial assets and provide investors with an independent
access to the stable but high yielding commercial property sector.
Devonshire Capital was financial advisor to the
transaction.
For further details please contact:
Oliver Hughes
Partner
Devonshire Capital
43 Conduit Street
London W1
Tel: (44) 207 734 7424
Email: oliver@devonshirecapital.com
Details of Acquired Assets
| Location |
No. of
Factory
|
No. of
Tenants
|
Average
Appraisal Price
|
Purchase
Price (THB)
|
Gross Rent*
(THB/Year)
|
Rental Yield
(% p.a.)
|
| Lard Krabang |
1
|
1
|
26,118,440
|
21,448,214
|
2,497,440
|
11.64%
|
| Nava Nakorn |
1
|
1
|
22,716,135
|
22,720,600
|
2,160,000
|
9.51%
|
| Bang Pa In |
1
|
1
|
47,832,270
|
47,841,672
|
4,800,000
|
10.03%
|
| Bangkradi |
1
|
11
|
167,671,095
|
165,703,659
|
20,958,629
|
12.65%
|
| Hi-Tech |
8
|
8
|
241,954,460
|
233,618,868
|
24,896,784
|
10.66%
|
| Total |
12
|
22
|
506,292,400
|
491,333,013
|
55,312,853
|
11.26%
|
Investment Highlights
- Indirect investment in immovable property,
an easy chance to be co-owners of ready made standard factories
for rent
- Invest in quality assets with high rental
occupancy and revenue
- Rental income is inflation hedged. It
will increase according to higher inflation as well as growing
demands for factories due to the rapid expansion of manufacturing
sectors in Thailand
- High asset appreciation potential because
new factory supply, especially in Greater Bangkok Area, is rare.
Government has posted more and more heavy regulations on industrial
zoning and building permission
- Well diversified. The fund will invest
in 12 factories in 5 different location currently with more than
95% occupancy
- Potential for future investment growth
by making additional investments in others quality factories
- Mutual funds are tax exempted which enhancing
net investment yield
- Liquidity provided by listing the fund
in SET for secondary market trading
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