Kanokvalee Viriyaprapaikit, a director of L&H Property, a subsidiary of Land & Houses PCL, one of Thailand’s major real estate developers, recently announced the company’s decision to promote a new hotel Real Estate Investment Trust (REIT), named ‘LH Hotel Leasehold Real Estate Investment Trust’ (LHHOTEL).
This will be the first REIT investing in a hotel located in the Bangkok central business district (CBD), at the connecting point of both BTS skytrain and MRT metro networks. The REIT will acquire leasehold rights, with a term of about 25 years, to the Grande Centre Point Hotel Terminal 21, located adjacent to the Terminal 21 shopping center in the Asok-Sukhumvit district.
L&H Hotel Management Co., Ltd. will enter into the master lease agreement for the hotel with a fixed rental payment of THB 240 million per year on a quarterly basis for three years, plus a variable rent subject to terms and conditions of the lease agreement.
Chantana Kanchanagama, President of Land and Houses Fund Management Co., LTD and acting as the REIT manager, said that the IPO of LHHOTEL is currently in the process of SEC approval.
Grande Centre Point Hotel Terminal 21.