Dusit Group Injecting Three Hotels Into Thai Property Fund
According to a notification filed with the Stock Exchange of Thailand (SET), the publically traded hospitality group Dusit Thani Public Company Limited has obtained shareholder approval for the disposition of three significant assets into a property fund.
The financial press is quoting company sources that the new Thai based fund will be THB4 billion and managed under Krung Thai Asset Management.
These assets are the recently acquired Dusit Thani Laguna Phuket Hotel set to be valued at between THB 2.7-2.75 billion; Dusit Thani Hua Hin Hotel THB850-950 million and dusit D2 Chiang Mai THB350-400 million.
Set out in the shareholders general meeting is a restriction that the group will not invest more then 1/3 of the sale into investment units in the property fund, which has set this ceiling at THB1,300-1,367 billion.
Final shareholder approval was also obtained for the transaction involving the purchase of the Dusit Thani Laguna Phuket.
Dusit will provide hotel management for a period of ten (10) years with five (5) year renewal clauses for the three hotels.
A newly set up SPV (Special Purpose Vehicle) will be established in connection with the start up of the property fund.
At the general meeting the company also approved the disposition of the Royal Princess Larn Luang in Bangkok's Khao San area with a price estimated at THB598 million.