The Trust insists to invest in any properties which potentially generate incomes, and/or on securities, or other assets which can bring the best profit to the Trust unitholders.
To make such investment, there are some investment policies which are required to follow as below;
1.
The Trust will focus on investing in properties such as ready-built factories, and/or warehouses. In such investments, the Trust may consider on the acquisition of ownership right and leasehold right in lands and factory buildings on the properties owned by Amata Summit; however the properties must suit to the criteria as below;
- The properties to be invested by the Trust have to be any developed projects which are completed and present an outstanding operating outcome (an occupation rate should not be less than 85 percent)
- Average Rental Rate (ARR) should not less than (1) the ARR of total assets of Trust, and (2) ARR in last 5 years of Trust or as ever showed in the track record
- Lease space should not be less than 60,000 sq.m. or the total assets of the project should be not less than 2,500 MB.
Furthermore, the Trust may exercise its right of first refusal in order to invest in assets owned by Amata Summit, and/or its subsidiaries.
More detail regarding to the right to invest and the right of first refusal will be presented in the agreement in the Actions Agreement between Amata summit and the Trust.
2.
The Trust may consider investing in other types of assets aside from factory buildings, and/or warehouses, if the company as the REIT Manager conducts a feasibility study and other relevant variables, and the result of such studies show that the investments would benefit to Trust unitholders.
3.
In making decision of additional investments, the company as the REIT manager will conduct a study in order to figure out the possibility and the degree of appropriateness of such investment and evaluate potential risks and other related factors. So that, the company can ensure that the additional investment will generate long-term returns to the trust unitholders. During the investment, the REIT manager will act complying with the rules and restriction in relative contracts as well as disclose correct and sufficient information due to the additional investments to the Trust unitholders.
4.
The Trust may consider investing through acquisition in shares in a company established for the same purpose and functions in the same manner of the Trust. Such investment shall be complied to the following guidelines:
(A) The Trust must hold the shares not less than seventy-five (75) percent of the total number of sold (issued) shares, and not less than seventy-five (75) percent of the total voting rights of such company.
(B) There must be a measure in to ensure that the REIT manager and trustee would be able to supervise and manage the business in accordance with the Trust Deed and guidelines specified in the Notification No.Thor Jor. 49/2555 and other relevant notifications of the SEC Office which is similar to the case of direct investment in main assets and equipment.
5.
The Trust has a policy to invest in foreign assets.
In the case when the Trust experiences excess liquidity, the Trust may invest in other assets apart from the major assets which are properties. However, such investment shall be complied as follows:
1.
Apart from the main assets, the other assets shall be one of the following assets;
- Government bonds
- Treasury bills
- Bonds or debentures issued by the state enterprises or a juristic person established under specific law and unconditionally insured by Ministry of finance for all principal and interest
- The deposit at ordinary bank, or at the Secondary Mortgage Corporation
- Certificate of deposits issued by a bank or finance institution which is not structured notes
- Bill of exchange or promissory notes issued, availed or guaranteed by a bank, finance institution and credit-foncier company.
- Unit trust or warrants to purchase units of fixed income fund or other funds which has investment policy in debt instruments or deposits. In the case of unit trust of foreign investment fund, it shall be complied with the following conditions:
- Unit trust of a foreign mutual fund must be under the policy and governance of securities regulatory authority which is an ordinary member of International Organization of Securities Commission (IOSCO) or must be unit trust of foreign mutual fund trading in stock exchange which is a member of World Federation of Exchanges (WFE);
- The foreign mutual funds must have investment policy in similar types of assets as the REIT;
- The foreign mutual funds must be established for public investors.
- Units of real estate investment trust or unit trust of other trusts which are established under Thai laws
- Instruments of Real Estate Investment Trust established under foreign laws regardless of whether such trust is established as a corporation, trust or other forms. Such Real Estate Investment Trust shall contain the following characteristics:
- Real Estate Investment Trust is established for public investors and under the policy and governance of securities regulatory authority which is an ordinary member of International Organization of Securities Commission (IOSCO)
- Its key objective is to invest in immovable properties, ordinary shares of a company listed as a property development company which is a member of World Federation of Exchanges (WFE) and ordinary shares of a company comparable to a real estate development company.
- Having its securities trading in stock exchange which is a member of World Federation of Exchanges (WFE) or repurchasing by an issuer.
- Future contract only in the case where the purpose of entering into the contract is to prevent the risks of the Trust.
2.
The ratio of investment in other assets shall be in compliance with guidelines specified in the Notification related to investment ratio in assets of general mutual fund issued under Section 117 and 126 (4) of the Securities and Exchange Act.
3.
In a case where debtors of securities in which the Trust have invested is in default or under a circumstance of not being able to repay debt, the REIT Manager shall proceed in accordance with guidelines similar to those designated for mutual funds which are issued under Section 117 of Securities and Exchange Act.
The Trust may invest in shares of a corporation who is a tenant of the Trust’s main assets. Such investment shall follow conditions as follows;
1.
rental fee shall be designated with reference to the performance of the Trust’s main assets; and
2.
it shall be the investment in a preferred share of not over one (1) share which offers preferred right on approvals of the corporation’s operation (Golden Share) as stated in such corporation’s article of association whereby the article of association shall specify the right of the Golden Share held by the Trust in order to prevent such corporation from not performing its duties under the lease agreement entered with the Trust or to prevent such corporation from causing any impairment or damage to the Trust’s main assets.