The Securities and Exchange Commission (SEC) of Thailand is moving forward with new regulations to broaden investment channels for Thai ESG (TESG) and Thai ESG Extra (TESGX) funds.
These changes will enable the funds to invest more extensively in units of Real Estate Investment Trusts (REITs) and Infrastructure Funds that demonstrate strong environmental (E) or overall ESG credentials. The regulatory revisions, opened for public consultation between June and August 2025, are aimed at promoting sustainable investment in Thailand’s capital markets.
According to recent reports, the new rules are expected to be implemented by October, pending official announcement in the Royal Gazette.
Yuanta Securities (Thailand) predicts that Thai REITs and infrastructure funds are poised to benefit from the U.S. interest rate downcycle, which is anticipated to ease U.S. bond yields and support the local REIT index and Thai interest rates. The brokerage firm also projects that Thailand’s Monetary Policy Committee (MPC) may cut rates at least once more this year, which should further lower financial costs for REITs and infrastructure funds with high debt levels.
In addition, new capital inflows from local TESG and TESGX funds are expected to add support. Following positive outcomes from the recent public hearing, TESG funds will be permitted to invest in REITs and infrastructure funds, provided these vehicles are assessed by internationally recognized ESG evaluators.
Capital inflows from TESG funds are likely to materialize in the fourth quarter, traditionally the peak season for tax-saving funds. Given the expiry of tax benefits for Super Savings Funds (SSF), investors are increasingly expected to turn towards TESG.
Estimates suggest that approximately THB 8 billion in new investment could flow into the capital market, with 5–10% (THB 400–800 million) potentially allocated to REITs and infrastructure funds.
Following these, Yuanta Securities has recommended notable names, including:
CPN Retail Growth Leasehold REIT (CPNREIT): Thailand’s largest retail REIT, primarily holding long-term leases for shopping centers. Renovations at Central Pinklao are set to complete in 4Q25, expected to boost occupancy above 95%. The REIT has an average lease tenure of 29.5 years and holds a recognized ESG rating. The 2025 dividend yield is projected at 9.2%.
3BB Internet Infrastructure Fund (3BBIF): A fiber optic infrastructure fund with steady income from remaining leases of 13 years. After eliminating accumulated losses, the fund resumed dividends in 2Q25, allowing institutional investors to return. The anticipated 2025 dividend yield is 9.6%.
LH Hotel Leasehold REIT (LHHOTEL): Investing primarily in hotel assets, LHHOTEL performance is forecast to recover throughout 3Q and 4Q25 following earthquake-induced lows, as reflected in increasing occupancy rates. The fund’s 2025 dividend yield is estimated at 10.1%.
WHA Premium Growth Freehold and Leasehold REIT (WHART): The country’s largest warehouse and industrial REIT, featuring average lease terms of 25 years. WHART complies with ESG standards and is assessed by the global sustainability benchmark GRESB. The 2025 dividend yield forecast stands at 8.2%.
BA Airport Leasehold REIT (BAREIT): With potential future inclusion of Samui Airport, BAREIT’s prospects are tied to Bangkok Airways’ expansion plan to triple passenger handling by 2027, aiming to reach 6 million per annum. This should generate stable, recurring revenue streams for the REIT. The 2025 dividend yield is expected at 8.0%.
Frasers Property Thailand Industrial Freehold & Leasehold REIT (FTREIT): The second-largest industrial REIT after WHART, FTREIT invests in factories and warehouses with an average lease tenure of 19 years. It has recently obtained approval to acquire new assets worth THB 1.9 billion (78,075 sqm), expected to shore up short-term occupancy. The fund also carries GRESB-accredited ESG credentials and is projected to deliver a 2025 dividend yield of 7.8%.
