Thailand-Based Minor International Hits Pause on US$1 Billion Hotel REIT as Market Risks Rise
The move delays one of the group’s most closely watched capital-raising initiatives but does not appear to alter its wider expansion or debt-reduction strategy.
Thailand-based hospitality heavyweight Minor International PCL has hit the pause button on plans for its first real estate investment trust (REIT), an ambitious transaction valued at around US$1 billion, as deteriorating market conditions and geopolitical uncertainty make the timing of the proposed Singapore listing considerably less attractive.
Namida Artispong, Group Director of Investor Relations at Minor International, said during an online investor meeting today (August 13th) that the company was concerned about the possibility of investors requiring a higher-than-anticipated yield from the proposed REIT.
The original plan was outlined earlier this year by Minor International CEO Dillip Rajakarier, who said during a press briefing in February that the company intended to sell 14 hotels in Thailand and Europe into its first REIT.
by Nikhil Prasad