November 20, 2014 / 8:38 AM / 3 years ago

UPDATE 1-Thailand's Land & Houses plans $190 mln REIT IPO

* Plans to book gain of asset sales to REIT in Q4

* Expects record high net profit from asset sales to REIT (Adds details about REIT, 2015 outlook)

BANGKOK, Nov 20 (Reuters) - Thailand’s largest homebuilder Land & Houses Pcl plans to set up a 6.23 billion baht ($190 million) real estate investment trust (REIT) and offer a majority stake to the public this year, its managing director said on Thursday.

Land & Houses will transfer assets, including the Terminal 21 Bangkok shopping mall valued at about 5 billion baht, to the trust which will be set up by its 60 percent-owned unit L&H Property, Managing Director Adisorn Thananan-narapool told reporters.

The subsidiary will hold 15 percent of the LH Shopping Centers Leasehold REIT and the remaining 85 percent will be offered through the IPO, he added.

Proceeds from the IPO will be used to finance expansion of its rental and apartment businesses.

The company planned to book a gain from the asset sales to the trust in the fourth quarter, which will boost its net profit to a record high this year, Adisorn said. He did not specify the profit amount but said sales in 2014 would exceed the company’s 32 billion baht ($974 million) target.

Land & Houses also aims to launch another REIT next year worth an estimated 10 billion baht. The company could also plans to raise another 10 billion baht via bond issues next year, Adisorn said. Land & Houses plans to spend 7 billion baht on land acquisitions in 2015, he added.

REITs have become a popular way to raise funds for property developers in Thailand since the stock market has recovered after the military took over government in May, ending months of political unrest.

The success of the country’s first REIT, a $628 million trust launched by Bangkok Land in August, has also encouraged more developers to tap investor appetite.

$1 = 32.8600 Thai Baht Reporting by Saranya Suksomkij; Writing by Khettiya Jittapong; Editing by Miral Fahmy

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