Green light for conversion of DTCPF into an REIT

The Dusit Thani Freehold and Leasehold Property Fund (DTCPF) will now undergo The Security and Exchange Commission Thailand’s (SEC) REIT inception process, which is expected to complete by December this year.
 The process of conversion, dissolution, and liquidation will include the following steps: 1 Dusit Thani Properties REIT Co Ltd (a subsidiary of DTC) applies for approval to act as the REIT Manager. 2 Dusit Thani Properties REIT Co Ltd applies for the right to issue and sell the trust units. 3 Upon approval from the SEC to establish DTCREIT, the REIT manager will issue and sell the trust units of DTCREIT in exchange for the cash, assets and liabilities of DTCPF. 4 Dissolution and liquidation of DTCPF, the delisting of DTCPF investment units from the Stock Exchange of Thailand (SET), and listing DTCREIT trust units as listed securities on the SET.
 Suphajee Suthumpun, group chief executive officer, Dusit Thani Public Company Limited, said the unitholders’ decision to convert DTCPF to DTCREIT will facilitate Dusit’s three-year strategy for sustainable and profitable growth, which includes strengthening the group’s foundations in five areas: personnel development, process improvement, IT upgrades, property improvement, and enhancement of financial capacity. 
 “An REIT allows for greater growth potential because there are less financial restrictions, especially when it comes to borrowing money for property improvement,” said Suthumpun. “This greater flexibility will enhance our financial strengths and give us better access to financial resources to upgrade our existing properties, acquire new properties, and diversify our lines of business by exploring new investment opportunities.”