New real estate investment trusts for foreign investors have been stalled by the Bank of Thailand's December 18 imposition of controls on capital inflows.
However, managing director Maris Tarab has scrapped a planned road show for the fund out of confidence that it will be completely booked up by local and institutional investors.
The new property claims an internal rate of return of more than 11 per cent.
Since the underlying assets of
the fund - Major Cineplex Ratchayothin and Major Cineplex Rangsit - are leasehold, unit holders are entitled to receive their investment back along with returns.
"The lease for Ratchayothin runs 30 years with the right to renew for 30 years.
"Rangsit's lease is 21 years. We expect a 8.25-per-cent return in the first year, of which 2 per cent is investors' capital and the remainder the actual return," Maris said.
ING now has six funds in its property portfolio and plans to add four or five more this year.
Kasikorn Asset Management's Gold Property Fund was the first to come out this year.
It was fully taken up by local and institutional investors.
Vicha Poolvaraluck, chairman and CEO of Major Cineplex Group, said the group still held properties worth about Bt9 billion and would transfer more of them into the Major Cineplex Lifestyle Property Fund in the future.
Subscriptions will be taken from Wednesday to June 21, with a minimum investment of Bt50,000.
Source: The Nation
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