Brick by brick: ONEAM builds investor excitement with TIREIT launch

ONE Asset Management (ONEAM) is digging foundations in the investment world, launching the Thai Industrial Real Estate Investment Trust (TIREIT) for investors seeking fresh opportunities amidst a shifting financial landscape.

With high interest rates finally shifting into the rear-view mirror, savvy investors are turning to alternative assets like TIREIT to spread their risk. Chief executive Pote Harinasuta has revealed that the public will be able to snap up TIREIT units starting tomorrow, with availability lasting through October 18.

TIREIT is hot off the conversion press from Thai Industrial Fund 1 (TIF1), poised to expand investment portfolios and pump up profits, said Pote.

“We expect the Thai economy to rally through year-end, buoyed by government spending, investment, and robust consumption.”

As Thailand’s political atmosphere calms and the Federal Reserve maps out its interest rate strategy, ONEAM predicts the Bank of Thailand will hold its monetary stance firm, keeping the policy rate at 2.5% into 2024, dropping to 2% the following year, added Pote.

“The Thai economy bolsters TIREIT, offering sustainable returns that catch the eye of investors.”

Prime industrial estates

Post-revamp, TIREIT is set to amp up asset acquisitions, driving rental income skyward. It remains the only trust in Thailand boasting 100% freehold rights on land and buildings in prime industrial estates and warehouses, all set to appreciate over time.

Valued at a cool 2.25 billion baht using a cost approach, TIREIT is sitting pretty as the value of industrial estates and available warehouses for rent continues to rise. Projections indicate industrial land renting will soar by a staggering 18-20% annually from 2023 to 2025, serving up a sizzling opportunity for factory and warehouse investments this year.

The numbers don’t lie: by late 2023, fully built factories claimed an impressive 81.8% occupancy rate, while warehouses stood at 79.7%. These stats reflect a booming demand for industrial rent space.

Looking forward, industrial land and warehouse rentals are primed for major growth, dovetailing with economic expansion, pumped-up public investment initiatives, and the strategic relocation of foreign companies to dodge supply chain hiccups. A key driver here is Thailand’s soaring express delivery services, fueled by an e-commerce boom.

TIREIT is now boasting a juicy dividend return of 7%, up from 5.8% pre-conversion, expected to align with the estimated 8% annual returns from industrial REITs in the coming year, as of August 2024, said Pote, urging investors to consider TIREIT for a steady stream of long-term income.

“What sets TIREIT apart is its all-freehold assets.”

TIREIT, fresh out of the transformation from TIF1, consists of two juicy parts. Some of the country’s prime assets include locations across Hi-Tech Industrial Estate, Bangkadi Industrial Park, and Amata City Industrial Estate, all freehold. New additions feature Green Park’s sites, boasting an impressive 100% occupancy rate.

Post-conversion, TIREIT’s overall occupancy rate is strutting at a solid 80%. Its tenants are a smorgasbord of Thai and international firms from sectors like industrial materials, automotive, and medical supplies.

JCK International Public Co Ltd is on deck as the management company for TIREIT assets, steering this high-flying venture to success, reported Bangkok Post.

Pote rounded things off by reiterating that the opportunity to snap up TIREIT units opens tomorrow, running through to October 18.