LPF Announced Suspended Trading in Preparation for Conversion to AXTRART

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Mitihoon  –  The Stock Exchange of Thailand has announced a temporary trade suspension of the investment units of Lotus’s Retail Growth Freehold and Leasehold Property Fund (LPF) in preparation for the conversion to Axtra Future City Freehold and Leasehold Real Estate Investment Trust (AXTRART). The book closing date is set for November 25, 2024, to determine LPF unitholders’ rights to exchange their units for AXTRART units (XO-Swap). Trading of LPF units will be suspended (SP) from November 21, 2024 onwards until the LPF units cease to be a listed securities on the Stock Exchange of Thailand (SET). The last trading day for LPF units on the SET was November 20, 2024.
The exchange of units and the transfer of assets and liabilities are expected to take place on November 26, 2024. AXTRART will assume all assets, liabilities, rights, obligations, and contracts of LPF. A total of 2,337,282,928 AXTRART units will be offered, and existing LPF unitholders recorded on the book closing date (before November 25, 2024) will have their units automatically converted to AXTRART units at a swap ratio of 1:1 (one LPF unit for one AXTRART unit). The LPF units are expected to be delisted from the SET, and the REIT manager will list AXTRART units on the SET by December 2024.
Mr. Sarnthor Mudhasakul, Managing Director of Axtra Future City Property REIT Co., Ltd., the REIT manager of AXTRART, stated “The conversion to AXTRART marks a significant step towards sustainable growth for the business and investors. AXTRART was established to facilitate the conversion of LPF, with a commitment to ensuring investors grow steadily alongside the business. Building on the strengths of the former LPF, combined with the advantages of a REIT structure, we offer the following benefits:
  • Enhanced Investment Potential: Increases ability to raise capital allows for more real estate investments, portfolio expansion, risk diversification, and increasing potential returns.
  • Greater Financial Flexibility: REITs can borrow up to 35% of total asset value, and up to 60% with an investment-grade credit rating, compared to a maximum of 10% of net asset value for property funds.
  • Opportunities for International Real Estate Investment: Reduces risks associated with investing in a domestic market and opens opportunities for higher growth and returns in promising international markets.
“Furthermore, REITs are a globally recognized investment vehicle with strict regulations and oversight, enhancing credibility and attracting both domestic and international investors. They offer a suitable option for portfolio diversification by investing in assets with stable value, managed by experienced REIT managers. Therefore, investing in REITs is an excellent choice for generating stable long-term returns,” added Sarnthor.
Following the completion of the conversion, AXTRART is expected to begin trading on the Stock Exchange of Thailand by December 2024.

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