DTGO said to weigh Singapore REIT IPO for $609 million UK assets

DTGO said to weigh Singapore REIT IPO for $609 million UK assets

Thai conglomerate DTGO Corp is weighing listing its UK hospitality assets via a real estate investment trust in Singapore as soon as next year, according to people with knowledge of the matter.

The Bangkok-based company is in talks with potential advisers on the initial public offering of the REIT, which could raise about £200 million (8.3 billion baht), the people said. The UK hospitality assets involved could be worth about £500 million, said the people, who asked not to be identified as the process is private. 

Deliberations are at an early stage and DTGO could still decide not to proceed with the REIT IPO, the people said. A representative for DTGO declined to comment.

The REIT IPO by DTGO, should it go ahead, would be the second such pound-denominated offering in Singapore, after Elite Commercial REIT raised about £135 million in 2020, according to data compiled by Bloomberg. Any deal would be much-needed by the city-state where there has only been one IPO this year, raising just $12.6 million.

Founded in 1993 by Thippaporn Ahriyavraromp with the concept of business-social integration, DTGO has grown into a conglomerate with interests in real estate, trading, technology, finance, entertainment and investment, according to its website. Ms Thippaporn is the daughter of Dhanin Chearavanont, senior chairman at Charoen Pokphand Group, one of Thailand’s largest companies with interests in agriculture, food, retail and telecommunications. 

DTGO bought a 17-hotel portfolio of IHG and Hilton franchised hotels in the UK from hedge fund Marathon Asset Management in 2019.

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