A THB 3.3billion (US$109 million) property fund will be established by Thailand's Land & Houses Plc (LH).
The Land and Houses Freehold and Leasehold Property Fund will buy out some residential units from the company, and is expected to boost the company's income, The Nation reported. LH is the country's largest developer, reporting a consolidated net profit of THB5.6 billion (US$189 million) last year, 41.23 per cent over the previous year.
In a filing to the Stock Exchange of Thailand also explained that Land & Houses Fund Management Co Ltd, to manage the fund, should be established before the end of the first quarter. It is waiting for the Securities and Exchange Commission's permission.
The fund will buy residential units of L&H Villa Sathorn from L&H Sathorn Co Ltd, at the value of THB628 million (US$20 million), the company said.
It will also buy assets from Land and Houses Property and Loan Fund-II, owned 49 per cent by LH, The assets covered Centre Point Sukhumvit-Thong Lor Serviced Apartment Project and Centre Point Residence Phromphong Project to the Fund.
LH will own 15 per cent of the newly-established fund, through the THB495 million (US$16 million) investment. The board also approved the minimum rental income guarantee through end-2015. The guarantee is up to 50 per cent of the fund's actual net profit.
