Chandler MHM

Chandler MHM advises Government Savings Bank on financing for GROREIT, Thailand’s first buy back REIT

Chandler MHM Limited (CMHM) advised Government Savings Bank on the financing of an investment in Royal Orchid Sheraton Hotel and Towers by Grande Royal Orchid Hospitality Real Estate Investment Trust (GROREIT).

GROREIT marks the first real estate investment trust (REIT) with a buy-back condition listed on the Stock Exchange of Thailand. This was established under the regulation of the Thai Securities and Exchange Commission introduced in January 2021. The aim of the regulation is to assist the real estate and hotel sectors which have experienced financial difficulties during the Covid-19 pandemic. GROREIT has invested in the freehold right of the Royal Orchid Sheraton Hotel and Towers project, a luxurious 5-star hotel located alongside Chao Phraya river in Bangkok. The sponsor, Royal Orchid (Thailand), can repurchase the project back within 5 years from the first trading day of GROREIT. This is also the first time that the Government Savings Bank has provided credit facilities to a real estate investment trust. 

The team was led by Tananan Thammakiat (Partner). She was supported by Worapan Wuttisarn (Counsel), Sarunporn Chaianant (Senior Associate) and Nathaorn Yingseree (Associate).

Tananan commented “We are proud to have advised on this transaction, which in addition to being a first in the market, was achieved despite challenging market conditions”.

The Capital Law Office Limited acted as borrower’s counsel. 

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