Hemaraj Real Estate Investment Trust (HREIT) is about to acquire an additional 55,131 square metres of leasehold rights worth 1.69 billion baht, says managing director Kanchana Ouaoborm.
The move is part of HREIT's plan to increase the number of locations for property leasing to secure more tenants. This would facilitate rising revenue and higher dividends for shareholders.
The additional rights would raise HREIT's total assets to 9.69 billion baht, up from 8 billion, with total rental space growing more than 300,000 sq m, up from 261,314 sq m, covering seven industrial estates.
The leasehold area would cover three provinces -- Saraburi, Rayong and Chon Buri -- which are being promoted under the government's flagship Eastern Economic Corridor (EEC) policy.
The EEC project spans more than 30,000 rai in the three eastern provinces of Rayong, Chon Buri and Chachoengsao. It was designed to accommodate new investment in 10 targeted industries to pursue added value and push the economy towards the Thailand 4.0 era.
The government aims to attract 30 leading multinational companies to invest in the EEC over the next two years. The area is meant to be Thailand's new growth engine, featuring high-tech and innovative industry clusters.
"The new properties will help diversify risks and increase the number of tenants in various locations across the Eastern Seaboard. It will also help lift up the occupancy rate, which should eventually increase revenue," said Ms Kanchana.
The new mix of tenants will include those investing in targeted industries such as the automotive sector, who are set to account for 44% of all tenants.
The logistics industry is expected to account for 22% of tenants, the consumer sector (10%), the electronic industry (8%), materials and construction (3%), services (3%), packaging (4%), with others accounting for the rest.
The average renewal rate of existing lease properties is 63-71%, she said.
HREIT shares closed yesterday on the Stock Exchange of Thailand at 8.05 baht, down 10 satang, in trade worth 19 million baht.