Blue Whale Asset wants Blue Whale Hospitality Freehold and Leasehold Real Estate Investment Trust (BWHREIT) to be the country's biggest hospitality REIT by next year.
The independent REIT manager plans to enlarge BWHREIT to 10 billion baht in value next year and 20 billion baht in 2021, said chief executive Rungyos Chantapasa.
BWHREIT expects to raise 4.42 billion baht, with 3.58 billion from an initial public offering (IPO) and the remainder from bank loans. It plans to invest in freehold rights in the 455-room Langham Splash Jungle Resort and Water Park on Mai Khao beach in Phuket, 20-year leasehold rights in the 74-room Hansar Samui Resort and Spa in Surat Thani and 30-year leasehold rights in Greenery Resort and Khao Yai Convention Center in Nakhon Ratchasima.
Upon completion of the fund mobilisation plan, BWHREIT will be the country's second largest hospitality REIT after LH Hotel Leasehold Real Estate Investment Trust (LHHOTEL).
"There are another 10 hotels we plan to acquire to increase our size to achieve our mission of becoming the country's largest hospitality REIT by next year," Mr Rungyos said.
The trust plans to evenly balance leasehold and freehold rights in its portfolio, starting with 57% freehold and 43% leasehold initially.
BWHREIT also plans to expand to seven provinces, aiming to add hotels in Bangkok, Pattaya, Krabi and Chiang Mai to its portfolio.
Pattera Dilokrungthirapop, chief executive at DBS Vickers Securities Thailand, said the trust's IPO filing has already been submitted this week and a unit trust offered to primary markets is expected by the final quarter.
The REIT's return is estimated at 8.5% for the first year.
"REITs have become more popular among investors as they search for portfolios with stable income streams. Amid a wildly swinging market with plenty of uncertainties, REIT is an asset class that gives steady returns while enhancing asset allocation," said Mrs Pattera.