Chandler MHM has advised Lotus’s Retail Growth Freehold and Leasehold Property Fund (LPF) on its conversion to the Axtra Future City Freehold and Leasehold Real Estate Investment Trust (AXTRART). This groundbreaking conversion involves 23 Lotus shopping centers valued at over 32 billion Baht across Thailand, establishing AXTRART as one of the four largest REITs to date.
AXTRART commenced trading on the Stock Exchange of Thailand on December 12, 2024, and is now ranked among the top four REITS by value on the Real Estate Mutual Fund and Property Investment Trust Index (PF&REIT). AXTRA Future City Property Reit Company Limited, the REIT Manager of AXTRART is a subsidiary of CP Extra Public Company Limited (CPAXT), which focuses on the wholesale and retail business, and CP Future City Development Corporation Limited (CPFC), dedicated to real estate development.
This transaction resulted in AXTRART assuming all assets, liabilities, rights, obligations, and contracts of LPF. The assets include approximately 340,000 square meters of leased space, of which 80% is Freehold and 20% is Leasehold. These shopping centers are situated in high-potential areas close to communities, featuring convenient transportation options and significant economic growth opportunities. The conversion to a REIT will enable the fund to raise capital for further real estate investments, thereby expanding its portfolio. As REITs are globally recognized investment vehicles with strict regulations and oversight, this transition is expected to attract both domestic and international investors.
The team from Chandler MHM was led by Tananan Thammakiat and Koonlacha Charungkit-anant, supported by a team of 28 lawyers, including Worapan Wuttisarn, Piyawannee Watanasakolpunt, Tanyamai Thanissranont, Thitiyapa Boonkong, and Onpreeya Pimol.
Tananan Thammakiat and Koonlacha Charungkit-anant, commented, “We are immensely proud of our cross-practice team, which worked in close collaboration to ensure the success of this market-leading transaction. This was a major logistical challenge, with a team of 28 lawyers working together to close 23 sites simultaneously in one day. Few firms in Thailand have the experience and resources to achieve this.”
Tananan Thammakiat is recognized as a leader in the Thai market for real estate and REITs and is ranked by independent global legal publications. Koonlacha Charungkit-anant is a leading real estate, corporate and M&A partner in Thailand.
