REIT - Real Estate Investment Trust

Example Structure of REIT setup

Please note: Excerpt below rewrote from REIT Brochure published by SET and SEC

REIT (Real Estate Investment Trust) is a type of "trust", with a trustee act on behalf of beneficiary, and it has non-juristic person status. The trust settlor will become the REIT Manager (RM) whom will offer trust units to the public. Once received capital from the sale of trust units, the RM will entrusted the following fund with the REIT's designated trustee in order to establish the REIT. The trust deed will assign the REIT Manager to manage the REIT and the trustee to supervise the performance of the REIT Manager and administer the REIT in the best interest of the beneficiary.

REIT Manager (RM)'s Important Qualifications
A REIT Manager must
  1. be an asset management company that is well equipped with personnel and work systems;
  2. be a Thai juristic person:
    - with  ≥ THB 10 million of paid-up capital;
    - main business is to manage REIT/in the event that the REIT Manager also operate other businesses, a system to prevent conflict of interest myst be established;
    - at least one third of the board members being independent directors;
    - no directors, executives, or major shareholders possessing prohibited characteristics;
  3. Apparent organisational structure equipped with work systems and personnel whom are experienced in investment management / has been in the real estate business for no fewer than three of the last five years prior to the application submission;
  4. be Approved by the SEC (renew every five years)

REIT Manager (RM)'s Important Duties and Responsibilities
  • Submits and Application of public offering with the SEC; 
  • Determines REIT operation and investment strategies;
  • Invests and seeks benefits from real property;
  • Manages the REIT in accordance to the trust deed and relevant codes;
  • Calculates and discloses the value of real in the REIT and the value of the trust unit;
  • Maintains property in a condition suitable to seek benefits;
  • Determine dividend payment;
  • Organises an annual meeting and any requested by the unit holders.

I will write more about this soon after confirmation from several parties involved. That is part of my work which has not yet accomplished.




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