Thai developer Hemaraj to sell its first property fund

[BANGKOK] Hemaraj Land & Development Pcl, Thailand's biggest industrial land developer, plans to raise about 4.5 billion baht (S$176.8 million) by selling its first property fund to help finance new projects.

The fund will be backed by rental revenue from factories and warehouses, and the proceeds will be used to develop a new industrial park in Rayong province and pay debt, chief executive officer David Nardone said in an interview here on Monday.

Hemaraj joins Thai billionaires Charoen Sirivadhanabhakdi and Dhanin Chearavanont in selling funds backed by real estate to tap local demand for investments offering higher yields than bank deposits or bonds. The company, which helped Ford Motor Co and General Motors Co build factories in Thailand, plans to spend about 40 billion baht over five years to bo…