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New property fund pays 7% minimum

Bangkok Post
The Grande Centre Point Sukhumvit - Terminal 21 is located at Asoke intersection where the BTS and the MRT cross paths.

The Grande Centre Point Sukhumvit - Terminal 21 is located at Asoke intersection where the BTS and the MRT cross paths.


Quality House Hotels and Residences (QHHR), a new property fund owning three property projects, will offer a guaranteed minimum return of 7-8% for the first three years of investment, with a plan to list late next month.



The fund will manage assets developed by Quality Houses Plc (QH), the developer of the Centre Point Hotels and Residence and service apartment projects, located in the central business district.

Its properties include the Center Point Center Hotel & Residence Petch Buri on Phetchaburi Road, the Center Point Hotel & Residence Sukhumvit on Sukhumvit Road and the Center Point Hotel & Residence (Langsuan) on Lang Suan Road.

QHHR, with assets totalling 3.36 billion baht, will take subscriptions from July 5-13 with a minimum investment of 10,000 baht. It also plans to list on the Stock Exchange of Thailand next month.

Suchai Sutasthamkul, the chief executive of CIMB Securities, the financial adviser for the IPO, said the three hotels are located in prime locations, with an occupancy rate of 70-80% in the past three years. The Phetchaburi and Sukhumvit projects are freehold, while the Lang Suan project is leasehold for 14 years.

As the fund supporter, QH said apart from the minimum guaranteed return, it expects a minimum rental revenue for the second half 2012 at 143.9 million baht, 266.1 million for 2013, 278.3 million for 2014, and 146.7 million baht the first half of 2015.

He said the Centre Point is a strong brand for property management, especially services apartments and hotels, for over 20 years. The group is ranked as the country's leading service apartment chain and the largest in terms of asset under management of 2,500 units from 11 projects.


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