SET-listed Singha Estate Plc (S), a property development arm under the Boon Rawd Brewery Group, is planning to launch SPRIME, a real estate investment trust (REIT) investing in 30-year leasehold rights of Suntowers office buildings.

SPRIME has filed securities papers and is awaiting Securities and Exchange Commission approval.

Suntowers was acquired by Singha Estate through a business transformation worth 4-5 billion baht.

The Suntowers office buildings consist of two towers, with a total space of 118,828 square metres, office space of 62,850 sq m and conference space of 994 sq m.

The complex was acquired by the company through a business transformation worth 4-5 billion baht. The average occupancy rate is 95.1%, with an average rental rate of 572 baht per sq m per month. There are 62 tenants.

"Rental office buildings still have opportunities to grow, especially grade B+ buildings, because of low rental prices and limited supply amid excess demand," said Naris Cheykin, Singha Estate's chief executive.

SPRIME REIT is managed by Max Future Company, a Singha Estate property management subsidiary, which has the first right of refusal on all Singha Estate's properties.

Mr Naris said Singha Complex, a mixed-use complex located at the Asok-Petchburi intersection, may be included into SPRIME in the future. Singha Complex has an occupancy rate of 82% and is expected to be fully occupied by next year's first quarter. Funds raised from SPRIME will be used to invest in the company's hotel projects and the Oasis project, a commercial and office building located close to Suntowers office buildings.

In the next three years, Singha Estate might set up a hospitality REIT and sell the company's properties to the REIT as the company has 37 hotels overseas in countries such as England, Mauritius, Fiji and Maldives.

Ekkapob Makeguljai, executive vice-president at Krungthai Bank, the financial adviser of SPRIME, said up to 5.7175 billion baht worth of funds will be invested in SPRIME's initial assets, which will be raised by loans (up to 1.35 billion baht) and by an offering of investment units (up to 4.467 billion baht at 10 baht per unit).

Singha Estate and related parties will hold at least 15% of investment units set to be issued.

S shares closed on Monday on the SET at 3.22 baht, up 10 satang, in trade worth 20 million baht.