An artist’s impression shows the
completed project
on the banks of the Chao Phraya river in Bangkok.
Luxury condominium developer Raimon Land Plc has consolidated
its investment in “The River” by acquiring an additional 25% stake in Taksin
Hotel Holding Co., Ltd “THH” from Lehman Brothers Bangkok Riverside Development
Pte Ltd, and boosts the construction program. THH is a parent company of Taksin
Properties Co., Ltd “TPC”; TPC is the owner of “The River”.
The
piling work continues apace at ‘The River’ development.
The acquisition has resulted in an increase of Raimon Land’s aggregate
investment in “The River” from 60% to the current 85% shareholding (74% held
directly by Raimon Land and 11% held through “Contemporary Property Co., Ltd”, a
Raimon Land subsidiary). The balance of the shares is held by Raimon Land’s two
major shareholders, IFA Hotels & Resorts 3 Ltd and Istithmar FZE, both
headquartered in Dubai.
The transaction is another step in Raimon Land’s reorganization program which
has entailed the refinancing of several loans through local and international
sources, the reduction of overhead expenses by 40% and the revitalized focus on
existing projects currently under construction, insuring their timely completion
and transfer to buyers.
Raimon Land Chief Executive Officer, Hubert Viriot, said “the recent acquisition
of these additional shares in ‘The River’ is an indication of our long-term
commitment to our on-going projects, as well as our commitment to maintaining
the construction schedule of this landmark development.”
As a result of the acquisition of Lehman Brothers Bangkok Riverside
Development’s stake in ‘The River’, Raimon Land’s revenue stream for the next
three years is expected to increase from Baht 9.0 billion to Baht 12.75 billion.
Similarly, the resulting profit sharing from proceeds on the project will
increase by 25%.
Raimon Land has achieved over Baht 7.7 billion in sales revenue since it
launched ‘The River’ 18 months ago, and has sold close to 55% of its overall
inventory. Despite the recent economic and political turmoil, sales at the
project have continued at a brisk pace.
‘The River’ has secured a syndicated loan of Baht 5 billion towards the
development of the project; participating banks include Standard Chartered Bank,
Thailand Military Bank and Siam City Bank.
All piling and sub-structure works have been completed and construction on the
superstructure commenced early this year. Beginning in mid-August, an aggressive
construction program will be implemented with one level rising every six days.
Construction progress is on schedule for completion by quarter four 2011.
Raimon Land recently won four awards at the Thailand Property Show 2008: Best
Developer, Best Condo Development (Phuket) for The Heights Phuket, Best Condo
Development (Eastern Seaboard) for Northpoint and Best Development Website for
the second consecutive year for www.theriverbangkok.com.
As part of the economic stimulus package and effort to boost the local property
market in the face of the current global economic crisis, the Thai government
recently announced a reduction in the Specific Business Tax (SBT). This follows
a one year extension of the reduction in Property Transfer Tax from 2% to 0.01%
on 28th March 2009.
By Royal Decree, issued in accordance with the Revenue Code Regarding Tax
Reduction (No.488) B.E. 2552, dated 19th May 2009, the Specific Business Tax
(SBT) has also been reduced from 3.3% to 0.11% for a period of one year,
beginning from 28th March 2009. The reduction applies for sales of all types of
real estate including condominium buildings and units.
Investors who are currently considering an investment in the Thai property
market are recommended to capitalize on the benefits of the government stimulus
package during this period. (Source PR Log)
