The Thai property developer Bhiraj Buri Group is planning to introduce new projects alongside the many Single House in Sukhumvit, which they plan to fund with a real estate investment trust fund they recently set up. The trust fund is set to amount to a total of Bt6B, which will be set for use in new mixed-use projects along the length of the Sukhumvit Road in the capital. The aim of the new development was to make the new area a hotspot for consumer goods and e-commerce.
The Bhiraj Office Leasehold Reit (BOFFICE), will invest in new leasehold spaces in the Bhiraj Tower at EmQuartier, a notable high-quality office building located in Sukhumvit’s CBD. The new lease will be for a term with a length of 26 years and nine months.
Managing Director AtthakornNetneramitdee, BhirajReit Management, says that the building started its rental services back in March 2015 and, by the end of September already an occupancy rate of 98.7%, with a total leased space of 49,700m2 occupied by over 8,000 workers.
The tenants of the Tower range from small firms up to large multinational companies from a wide range up to and including e-commerce, pharmaceuticals, among others, with foreign companies comprising 80% of the tower’s tenants, with the rest being domestic firms.
According to Atthakorn, the largest tenant rented the 2,000m2 and accounts for 7% of the tower’s total rental revenue. As part of the rental contracts, the rental prices are revised every three years.
Atthakorn says that the BOFFICE’s initial target is aimed at long-term leasehold spaces 94,853 m2 within the Tower, which include rental office space, room for parking, as well as spaces for utility services and common areas.
PitiphatrBuri, the Executive Director of the BhirajBuri Group, says that the funds from the Reit would be used to invest in the mixed-use projects alongside the many Single House in Sukhumvit in Sukhumvit’s CBD, one of which is the Summer Lassale project, to be followed by a new project to begin in the second half of 2018.
The total investment of the Bt6.6B, to be made of issuing Reit shares, with the highest Bt5.153B.