Thai billionaire Charoen Sirivadhanabhakdi's firm eyes $1B listing for real estate investment trust

Thai billionaire Charoen Sirivadhanabhakdi's firm, Asset World, is exploring a potential $1 billion initial public offering (IPO) for a real estate investment trust (REIT). The company plans to transfer four hotels and an office complex worth around 48.5 billion baht (US$1.44 billion) to the REIT, according to Thai newspaper The Nation. These properties include The Empire in Bangkok and Banyan Tree resorts in Pattaya, Koh Samui, and Kabi.

Asset World's management believes these mature, premium freehold assets possess established operating performance and the potential to generate recurring income. The firm aims to attract both Thai and international institutional and retail investors, with foreign institutional investors expected to constitute roughly half of the REIT's initial offering, planned for early 202.

As the property group seeks to free up capital from mature assets and channel it into new projects, the new REIT is expected to become an important funding vehicle for Asset World, as stated by Wallapa Traisorat, the group's CEO and Charoen's daughter. The company plans to inject more assets into the REIT over time to unlock their value.

In addition to the REIT, Asset World is evaluating nine other properties with a combined total of 3,100 hotel rooms and 32,235 square meters of net lettable area for potential future transfers. The firm plans to invest 100 billion baht (approximately US$3 billion) through 2030 to expand its hotel and commercial businesses. Its current portfolio consists of five office buildings, 11 retail and wholesale properties, and 25 hotels under various well-known brands such as Marriott, Hilton, Hyatt, and Sheraton.

Asset World is listed in Thailand and is part of the vast business empire controlled by Charoen and his family. Charoen and his relatives rank fifth on Forbes' list of Thailand's richest people as of July, with an estimated combined net worth of US$11.5 billion. The empire includes Thailand's largest beverage producer and distributor, Thai Beverage, packaging company Berli Jucker, hypermarket operator Big C Supercenter, and another property developer, Frasers Property. Charoen's son, Panote Sirivadhanabhakdi, serves as the CEO of Frasers Property.