Structure

Group Company Structure Management and Return on Investment Risk Management and Strategy

Group Company Structure

AWreit&co Holding (Thailand) Co., Ltd. is a holding company specializing in real estate investment, combining real estate investment with returns similar to those of bonds.


Structure of AWreit&co Holding (Thailand)

1. Format

  • This is a specially designed Real Estate Investment Trust (REIT) with a condition that returns the principal to investors upon maturity, along with dividend payments along the way.
  • Investors hold 100% of the preferred bonds, while the project uses funds from the trust to invest in developing buildings or businesses that generate stable income.
  • Funding: AWreit&co Holding (Thailand) will conduct a private placement of debentures to raise funds for the development of projects within the group.
  • Investment: Using capital sourcing funds, purchase real estate from a real estate developer at a discounted price.
  • Property Ownership: Purchased/built/managed and owned by a subsidiary (Arawan Property Co., Ltd.) which is 99.99% owned by AWreit&co Holding (Thailand)
  • Income: AWreit&co Holding (Thailand) will receive rental income from the properties it owns, which will be distributed as dividends to unit holders.

2.Capital flow and returns.

  • Investors → Invest in Bonds → Buy Government Savings Bonds → Use Government Savings Bonds as collateral for loans → Hold rights to assets (e.g., buildings/projects)
  • Income from operations → Remitted back to the parent company → Regular annual payments (dividends + principal as specified in the contract) to investors
  • Upon contract maturity (e.g., 13 years), all principal is returned to investors

3. Mechanism

  • Upon maturity of the contract term (e.g., 13 years)
  • The principal is returned in full to the investor.
  • Therefore, the investor receives both dividends paid along the way and the principal back in full upon completion.

Benefits for Investors

Investing in AWreit&co Holding (Thailand) offers unique advantages over typical REITs and is attractive to investors seeking stability.:

  • Principal Security: The investment is fully repaid upon maturity.
  • Predictable Returns: Because this investment has a fixed price and repurchase agreement, investors can predict the return and the time it will take to repay the principal, similar to investing in bonds with clear collateral.
  • Lower Risk: The value of the investment units will fluctuate less than typical REITs whose prices depend on the market value of the real estate, because it is a long-term contract (15 years). (and above)
  • Stable Income Source: Investors will receive income from dividends + full return of principal at the end.