Thai property developer Bhiraj launches Reit to invest in central Bangkok projects

Thai property developer Bhiraj Buri Group has set up a real estate investment trust to raise 6 billion baht (US$183.5 million) for new mixed-use projects on Sukhumvit Road in the capital Bangkok, aiming to make the area a landmark for consumer goods and e-commerce.

Bhiraj Office Leasehold Reit (BOFFICE) will invest in leasehold spaces in Bhiraj Tower at EmQuartier, a grade A office building in Sukhumvit's central business district, and all connected areas for a term of 26 years and nine months.

The inception was filed with the Securities and Exchange Commission on November 9 and is pending approval.

Atthakorn Netneramitdee, managing director at Bhiraj Reit Management, said the building started rental service in March 2015 and as of the end of September had an occupancy rate of 98.7 per cent and total leased space of 49,700 square metres, with more than 8,000 workers.

The tenants comprise small firms and large multinational companies in different industries such as consumer products, e-commerce, pharmaceuticals and automotive. Foreign companies make up 80 per cent of tenants and domestic firms the remainder.

The rental space ranges from 130 to 2,000 square metres and the rental price is 850 baht to 1,200 baht per square metre.