Strategic Property Investors Co Ltd (SPI), an independent REIT manager, has formed the Strategic Hospitality Extendable Freehold and Leasehold REIT (SHREIT) to raise up to 3.74 billion baht ($115 million) for operating three hotels in Indonesia and Vietnam.

The three hotels are Pullman Jakarta Central Park, Capri by Fraser in Indonesia and IBIS Saigon South in Vietnam, executive director James Lim told local media.

The total outlay of SHREIT will not exceed 5.42 billion baht ($166.2 million), raising from the subscription of trust units of a combined value of no more than 3.74 billion baht and the remaining 1.68 billion baht in loans from financial institutions.

Veena Lertnimitr, executive vice president, primary distribution, Siam Commercial Bank, said the estimated returns are in the range of 7.67 to 7.72 per cent annually as disclosed in the prospectus.

The subscription will be held in the middle of December and offered to business partners, parties related to the REIT manager, institutional investors, foreign initial purchasers, patrons of the underwriters as well as general investors.

The trust will be listed on the Stock Exchange of Thailand as a secondary market this year.

According to local media reports, SPI plans to raise an additional 5 billion baht ($153 million) via new REITs and loans in 2018 to continue investing in hotels in Vietnam, Indonesia and Cambodia.

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