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5. Risk from the income of the Fund where the period of income-guarantee is expired.
The amount of income guaranteed by Trinity Assets Co., Ltd. is higher than the amount of actual
income derived from the operation. Therefore, in the case where the period of guarantee by Trinity
Assets Co., Ltd. is expired, it may decrease the income of the Fund and may significantly affect
the dividend payment of the Fund.
However, Glow Trinity Silom Building under the brand GLOW is under the management of
Invision Hospitality Company Limited which is a sufficient and high-performed property
management company. Thus, this factor may not significantly affect the revenue of the Fund.
6. Risk from the ability to pay the rent of the tenants
The main revenue of the Fund is generated by the rent received from the tenants of the Initial
Investment Property and those tenants are the newly set-up companies having registered capital
of one million baht comparing with the rent which Trinity at Silom Co., Ltd. and Silomall Co., Ltd.
agree to pay to the Fund (fixed rent at 37.3 million baht per annum with the variable rent and fixed
rent at 16 million baht per annum respectively). The Fund may be subject to the risk from the
financial position and ability of such tenants (in case where the tenants are unable to pay the rents
and terminate the lease agreements) and the Fund is unable to find new tenants to replace those
previous tenants.
Nonetheless, during three or four years, if there is a renewal of the lease agreement, Trinity Assets
Co., Ltd. guarantees for the tenants performance, minimum guarantee to the Fund and also
guarantee by tendering a bank guarantee to the Fund in order to mitigate the above risk.
However, such bank guarantee is in an amount of 67.1 million baht which does not cover the total
accumulated rent throughout the four year period of guarantee which is equal 266.6 million baht.
Therefore, there may be a risk if the Fund makes a withdrawal under the bank guarantee and
Trinity Assets Co., Ltd. is unable to find or tender a new bank guarantee to replace the previous
bank guarantee. In this regard, the Management Company has analyzed the financial position
and the ability to perform under the undertaking of the tenants and the income guarantee by
Trinity Assets Co., Ltd. as prescribed in the Appendix of the Prospectus.
Information Memorandum of Trinity Property Fund 47