Bhiraj Office Leasehold Real Estate Investment Trust or Bhiraj Office REIT (BOFFICE) began trading yesterday on the Stock Exchange of Thailand (SET), with considerable demand propelling a share gain.
BOFFICE shares closed at 11.70 baht, up 1.70 baht, in trade worth 807.8 million baht.
The closing price was higher than the initial public offering (IPO) price of 10 baht per unit.
The IPO share subscription was well received by institutional and retail investors because they were confident Bhiraj Office REIT would generate a suitable return from its high growth potential, said Attakorn Netneramitdee, managing director of Bhiraj REIT Management Co Ltd.
Factors boosting investor confidence include a Grade A office building that has been designed as a mixed-use commercial complex, its location at the EmQuartier shopping complex on Sukhumvit Road and its high growth potential based on outstanding rental rates, said Mr Attakorn.
Bhiraj Office REIT is investing in the long-term leasehold right of the Bhiraj Tower at EmQuartier. The leasehold right covers office space for rent, the parking area, the common office space and the utility system for the project, totalling 94,853 square metres.
The leasehold period is 26 years and nine months, starting from Jan 1, 2018 and ending Sept 30, 2044.
The Bhiraj Tower at EmQuartier has continuously gained tenants since its launch in March 2015, reaching an occupancy rate of 98.7% of its total office rental space, covering 49,700 sq m, as of Sept 30, 2017.
The Bhiraj Tower at EmQuartier was developed by Bhiraj Buri Group.
Taweechai Tangthanasup, head of investment banking at Tisco Securities, the co-financial adviser and co-lead underwriter, said the asset is a quality project that is expected to generate attractive revenue with high growth potential.
He said the property has a high-quality tenant portfolio, ranging from small businesses to large multinational corporations, which will help the project to achieve a stable performance without needing to depend on any one segment, said Mr Taweechai.
Sawit Srisaranyapong, chief of the investment banking business division at Kasikornbank, a co-financial adviser and co-lead underwriter, reiterated that Bhiraj Tower at EmQuartier has high growth potential.