June 13, 200521 yr MFC fund built around expat market BANGKOK: -- MFC Asset Management today will launch MFC-Nichada Thani Property Fund with a 710-million-baht investment in luxury apartments for rent to expatriates in Nonthaburi. President Pichit Akrathit said the company's first property fund would invest in two lakeside luxury apartment buildings, Lakeshore West Apartment and Lakeshore North Apartment located in the vast 600-rai Nichada Thani Development project on Samakki Road in Nonthaburi. Nichada Thani is an international residential community. The choice of the property was taken carefully, as MFC wanted a clear target market of expats working in Thailand, with their children attending the International School of Bangkok (ISB). Dr Pichit said the fund was structured to minimise operational risks by leasing the entire assets to property owners who in turn would operate the apartments with an agreed schedule of yearly net rents of 48 million to 52 million baht, payable monthly over a seven-year term. ``The fund can therefore be assured of its rental income with no occupancy risk,'' he said, adding that the two properties will be acquired at prices below valuations as undertaken by two independent valuers so the fund would also face limited risks in reselling the properties in the future. The fund's policy is to pay dividends, at least once a year, of no less than 90% of annual profit, so it is suitable for investors who look for a medium- or long-term investment opportunity or those who are interested in investing in real estate. The minimum board lot for unit purchases is 1,000 baht. The initial public offering will be held from today until June 29. --Bangkok Post 2005-06-12
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