JWD, a leading fully integrated in-land logistics service provider, is seeking to sell some of its assets to a REIT, as its board has acknowledged the signing of an MoU to establish a freehold and leasehold REIT that would invest in its and its subsidiaries' warehouses, cold storages and land within three selected projects. Its management expects the deal to enable it to finance sustained logistics growths.
Mr Charvanin Bunditkitsada, Chairman of the Executive Committee and Chief Executive Officer (CEO) of JWD InfoLogistics Public Company Limited (JWD), a leading fully integrated in-land logistics service provider, revealed that, concerning the company's plan to sell its assets to a real estate investment trust (or 'REIT'), most recently, on 12 July, the company's board has acknowledged the signing of a memorandum of understanding (or 'MoU') between JWD and AIM REIT Management Co (AIM), a REIT manager duly registered under SEC rules, under which it was agreed to establish a REIT that would acquire freehold interests in JWD subsidiaries' land, cold storages, cold storage facilities and warehouses. The REIT would become the first in Thailand to invest in cold storages, he said.
The assets of JWD and its subsidiaries in which the REIT would invest include land, cold storages and document storage warehouses within three projects. Specifically, they include (i) the freehold interests in land and cold storages (buildings 6 and 7) in Pacific Cold Storage Project (Mahachai, Samut Sakhon), currently held by Pacific Cold Storage Co, a JWD subsidiary; (ii) the freehold interests in the warehouse and office building and other cold storage facilities in JWD Pacific Project (Suwinthawong Road, Chachoengsao), currently held by JWD Pacific Co, another JWD subsidiary, and the freehold interests in the land on which the Project is located, currently held by Benjaporn Land Co, yet another JWD subsidiary; and (iii) the freehold interests in the land and a warehouse and office building in DataSafe Project (Suwinthawong Road, Chachoengsao), currently held by Benjaporn Land Co.
"We and AIM are studying the investment structure and approach for the proposed REIT establishment, which would strengthen our financial position and health. The target properties within the said three projects are in mint condition and equipped with advanced technologies. After the REIT inception, we expect to use the funds raised to finance the expansion of our logistics business in the Asean region to ensure growths at the target levels", added he.