Airport-Prom Link, Makkasan, Thailand

Airport-Prom Link, Makkasan, Thailand

01-July-2016

PNO. 13115_4

Background:

The economic and commercial growth in Asok, Makkasan, and Ratchathewi are likely to continue in Bangkok. Many developers are attracted to these locations due to projects including airport link, MRT, BTS, and Makkasan Complex. The Makkasan Complex project is valued at two hundred thousand million baht which includes the interconnection between expressway and BTS and is planned to be developed as a new commercial business district of Bangkok. Thus, the private landowner has a plan to build a leasehold property of 25-floor residential unit at Kamphaengphet 7 Road, Makkasan Ratchathewi District.

• Project Owner : Landowner

• Project Location: Makkasan Ratchathewi District, Bangkok, Thailand

• Project Type: Luxury apartment

• Process Method: JV with landowner after SPC is established

• Business Permit: Attained

• B.P, E/S, F/S: F/S in process

Project Description:

The project property will consist of high-class units primarily targeting the wealthy foreign individuals. Because this is a leasehold property, an individual can purchase multiple units and rent out the purchased units to other individuals. The sale of units will begin simultaneously as the construction start and the expected construction period is 36 months. Currently, there are three sales agencies that meet the standards and qualifications set by the project owner: CB Richard Ellis Company, Knight Frank Charter, and Colliers International Thailand. These are well recognized real estate consulting and sales agencies

Proposal:

Landowner wants to create a JV. The project cost is estimated at 1.6 billion baht including the land (total project cost: USD 46 million) The land owner will make investment in kind (land) which is valued at half of the total project cost; and the landowner is looking for 800 million baht (USD 23 million) equity financing.

Key Facts:

• JV with landowner when SPC is established

• JV with the Landowner reduces the initial business risk

• Makkasan Complex project increases the value of this area

• Landowner is looking for Tier 1 or equivalent Korean construction company to join the project

• All necessary permits have been already attained; thus, once the financing is solved, the project may be started immediately.