Solutions for Thai Property Funds’ Performance Improvements

Abstract

A regulatory repeal of Thai property funds has faced limitation of raising capital to acquire new assets for improving the overall performances. Since they can decide not to convert to be a new form of Real Estate Investment Trust (REIT) owing to disincentives of tax benefit loss and conversion cost, it is a cry for discovering workable solutions to enhance existing funds’ performances to maintain strong performance without the capital increase approach. Among twenty discussed methods in the research, fourteen workable solutions were proposed by forty one interviewees, some of which are consistent with the other studies. On the contrary, few discussed methods are inconsistent with others, i.e. incentive and management fee in a form of share to the fund manager owing to perception of inactive role of the Thai property fund managers when compared to those of the international REITs. The remaining four approaches were discussed to be unfitting for utilization. Looking forward, Thai funds might grow and increase their performances by utilizing number of workable solutions under the circumstances of non–existence of Thai property fund regulation to support inorganic growth opportunities.