From the Bangkokpost
Metro Mall Development Co, an operator of commercial retail space at subway stations plans to open four new malls this year, bringing its total to six.
Managing director Pongsaridh Tantisuwanichkul said two malls would open at the Chatuchak and Kamphaeng Phet stations in the third quarter and two at Rama IX and Thailand Cultural Centre by year-end.
As well, he said, the company planned to renovate its two-year-old malls at the Sukhumvit and Phahon Yothin stations.
Looking back at TCC Capital Land’s successful foray into Bangkok’s high end condominium scene. Here is an old article on one of their first few launches…
CapitaLand’s Thai JV launches The Empire Place, a luxurious condominium in Bangkok’s CBD
Singapore, 8 December 2005 – TCC Capital Land, CapitaLand’s joint venture in Thailand with TCC Land, is launching today its third condominium project, The Empire Place, at an average price of Baht 95,000 per square metre. Located in Bangkok’s central business district, The Empire Place at Narathiwad Rachanakarin Soi 4 is a five-minute walk to the Chong Nonsi BTS skytrain station, which runs along Silom Road leading to the main shopping areas in central Bangkok. Pre-launch sales have been brisk. Over 25 percent or 70 units out of the 275 units launched, have already been sold.
TCC Capital Land had in September 2005 acquired the Narathiwad site and another prime residential site at Sukhumvit in Bangkok for a total of Baht 1.33 billion (S$55 million) from private land owners. The Empire Place is a 45-storey tower with 440 apartments, sitting on a freehold site of 8,712 square metres. The development is close to amenities including the sky train, offices, international schools, hospitals, hypermarkets and shopping centres.
Mr Chen Lian Pang, CEO of TCC Capital Land, said: “Our first two condominium projects have done very well, as they are high quality properties. Both Athenee Residence and Villa Rachkru are fully sold. We continue to see encouraging home sales in Bangkok, and are confident that the buying momentum will be supported by pent up demand for housing and strong economic fundamentals. The Empire Place will be a new landmark in Bangkok’s skyline, with its elegant blend of Art-Deco and Neo-Gothic design, which is attractive to young urbanites.”
The development offers 1-bedroom to 3-bedroom units, as well as penthouses with private swimming pools and double volume ceilings. Amenities available include a large pool with a stylish island connected to a shallow pool for children and an outdoor jacuzzi with surrounding lush gardens. Other features include huge outdoor and indoor function areas, a fully equipped exercise room, and tennis courts on the clubhouse sky deck. Target customers are young professionals and families who choose to live within the city to have a shorter travel time to work, and to enjoy a vibrant urban lifestyle.
TCC Capital Land, a joint venture between CapitaLand (40%) and TCC Land (60%), is a leading real estate developer in Thailand. Todate, the company has five residential
The company’s first residential project, the 219-unit Athenee Residence, located at the
About TCC Land Limited
About CapitaLand Group (www.capitaland.com)
CapitaLand’s listed serviced residence arm, The Ascott Group (“Ascott”), is currently the
From The PR Web
If anyone doubted the depth of overseas interest in Thai residential property; the continued sales of Bangkok condominiums and high quality resort properties notably in Phuket in the first quarter of 2007 has shown remarkable resilience as reported by CB Richard Ellis (Thailand).
Over the last three months, the level of enquiries has shown that demand and interest in Thai real estate remains strong. Our enquiry levels for resort homes have never been stronger and whilst buyers carefully weigh up political considerations, we are still closing sales and received deposits in all our offices"
The political uncertainty resulting from proposals made by the current Interim Government has given rise to concerns both domestically and overseas on the economy and impacted inbound investment, but the attraction of Thai property remains strong, to end users.
This sustained demand by end users and people looking for a quality lifestyle has resulted in continuing sales. Most quality condominiums in Bangkok have since 2002 enjoyed 40-50% sales to foreigners. These high quality properties in great Central Business District locations such as The Met or Athenee Residence have enjoyed significant capital appreciation.
These buyers have brought friends and colleagues into the market keen to follow in their success in investing in Thai property.
Purchasers in Phuket have virtually all enjoyed 50-100% capital appreciation and this factor coupled with a lifestyle to rival any worldwide resort has promoted continued interest in this destination. The Shangri-la Pool Villas launched in February this year have achieved incredible interest and strong sales. Thai resort properties with excellent sea views are still a fraction of the price of Caribbean property and this factor is creating growing global demand.
These increases may seem exaggerated but actual sales and resales bear this out. Phase I of Royal Phuket Marina, launched in 2005, completely sold out last year and resale stock now commands premiums of up to 100% as the Marina is now complete and in operation.
However, other countries such as Vietnam and Malaysia are studying the success of Thai resort properties and are themselves starting to bring resort product to the market. In Malaysia, foreigners are able, under their Second Home Policy, to own freehold property and to get 10 year visas, although, most resort developments to date, have actually been sold with 99 year leases. Vietnam currently offers 50 years leases to foreigners but Viet Q's have created an additional demand repatriating money from overseas. Total sales in these markets are only a fraction of the Thailand resort market.
CB Richard Ellis now sees the coastline from Da Nang in the north all the way through Thailand to islands such as Langkawi and as far south as Borneo (Sarawak and Sabath) as the Mediterranean of Asia.
We believe this growth trend in resorts will continue with Phuket very much at the picnical of the market having the highest international connections, the highest values, the most built quality stock. Phuket is the only resort which can boast facilities for private jets, marinas, international hospital and schools.
Despite increasingly competitive neighbours, Thailand is still, by a large margin, the destination which attracts the volume of enquiries and ongoing sales
Given that CB Richard Ellis sees an increase in genuine demand and a drop off in the numbers of developments launched due to the political climate and we see a situation when Thailand returns to a democratic government, with elections to be held this year, prices will react with sharp increases, just as they did ask after the tsunami due to pent up demand and a lack of new projects coming on to the market.
Developers such as the Shangri-la Villas and Royal Phuket Marina who continue to bring new quality schemes to the market deserve support. In hindsight these new launches will prove to have been smart moves both for the developers and the initial buyers who take advantage of a temporary lull in the market to buy prime units at launch prices.
In conclusion, CB Richard Ellis is impressed with the strength of overseas demand which continues unabated for Thai residential property; clearly this demand would increase dramatically with clear positive Government policies and with any improvement to land tenure such as longer leases or extension on ratio of condominium freeholds. But given the existing situation and looking at the market as it is today, there is still strong demand for Thai property and a growing interest in residence in Thailand.
With consumers feeling gloomy over the outlook of post-coup Thailand, the kingdom's nearly six- billion-dollar housing market has shrunk for the first time since 2000, industry experts say. "People are delaying buying property due to a lack of confidence in the economy and politics," said Atip Bijanonda, president of the Thai Condominium Association.
Sales in the residential property market, worth 200 billion baht (5.8 billion dollars), dropped by 10 billion baht in the four months to April this year, marking the first decline since 2000, the association said. The figure has rattled the industry, which saw demand nosediving during the 1997 Asian financial crisis. Atip said he expected more bad news with Thai consumer confidence stuck at a five-year low.
"The market may have negative growth this year," he said. To shore up housing demand, the military-installed government, which came to power after a coup in September 2006, is expected to launch measures aimed at reviving the property sector, including tax cuts.
Pimonwan Mahujchariyavong, a property analyst at Kasikorn Research Center, said consumers were putting off buying property as they awaited a further cut in the key interest rate. "Consumers are expecting gains from falling interest rates and they are waiting for the rate to go down further," Pimonwan said.
The Bank of Thailand slashed its key interest rate by a half- point to 3.5 per cent last week in a bid to spur sluggish consumer spending and the slowing economy.
It was the fourth rate cut this year but business leaders called on the central bank to lower the rate more aggressively in an effort to stimulate the economy, which is seen rising 3.8-4.8 per cent this year. If growth was just 3.8 per cent in 2007, it would mark the lowest increase since 2001, when Thailand's gross domestic product (GDP) expanded 2.2 per cent.
With flagging finances and political uncertainty under the military government, the number of new housing projects has fallen as some 90,000 houses and condos remain unsold in the market, said Pimonwan. "The property market has slumped significantly since the beginning of this year because of shrinking confidence in the economy among developers as well as consumers," she said.
The Bangkok property market remains in line with overall Asia-Pacific trends, according to the latest Jones Lang LaSalle Asia-Pacific property digest.
This is in spite of a softening market outlook due to political and economic uncertainty, said Thailand managing director Suphin Mechuchep.
The digest reported robust Asia-Pacific growth was fuelling new businesses and corporate expansion in key markets, which had seen big rent increases, rising wages, and a growing middle class in emerging markets underpinning the retail market.
Thailand's strong market fundamentals mean rents continue to rise in the office and retail sectors, although at a slower pace, the digest said. The Bangkok property market will likely regain momentum in 2008 if political dust settles following a general election planned for this December.
In the region, robust economic growth is driving demand for office space. The bulk of recent leases have been for finance, insurance, real estate and business support service companies.
Demand from banking and fund-management companies is strong in the financial centres of Hong Kong, Singapore, Sydney and Tokyo, resulting in some markets posting the best rents in 20 years.
"Rents are likely to stay buoyant with new supply low in the short term," Jones Lang LaSalle head of Asia-Pacific research Jane Murray said.
This is prompting some companies to relocate non-core operations to more affordable locations. This is the case in Hong Kong and Singapore, where the company noted an increasing level of leasing activity in fringe areas and industrial properties, Murray said.
In addition to the trend of relocating non-core operations to contain costs, strong exports from Japan, South Korea, China and many of the Southeast Asian countries have contributed to a revival in the industrial segment, particularly for hi-tech space and logistics centres.
On the investment front, the global appetite for real estate assets remains exceptionally strong. Factors driving this demand include significant growth in retirement savings, increased allocations to real estate by institutions, improving real estate transparency and large balance of payment surpluses of energy and commodity exporting nations.
Global investment in direct commercial real estate reached US$682 billion (Bt236 trillion) last year, up 38 per cent on 2005 and nearly double 2003 volume, according to a March Jones Lang LaSalle report called "Global Real Estate Capital: Moving Further and Faster".
In Asia Pacific, investment totaled $94 billion in 2006, an annual increase of 42 per cent. The investment hot spot of Japan dominated with transaction volumes surging 128 per cent and accounting for 55 per cent of regional investment.
Transactions in China rose a hefty 69 per cent to $9 billion, despite government measures to cool the real estate market.
Healthy economic and property-market fundamentals will ensure investor demand remains strong in 2007. Pricing pressures are likely to intensify with many funds increasing their weightings in Asia.
Strong competition in tier-one markets is resulting in some investors moving further afield to tier two and tier-three locations in search of superior risk adjusted returns.
Investor demand will remain unabated in 2007 on the back of attractive economic and property-market fundamentals and increased institutional weightings to real estate, Murray said.
Destination Properties recently announced a new addition to its portfolio of resort properties in Thailand the acquisition of Surin Beach Resort in Phuket. Lehman Brothers provided the financing for this acquisition.
Located on Phuket's famous west coast, Surin Beach is considered by many to be one of Phuket's finest beaches: the white, soft sands and inviting warm sea of Surin remain peaceful and idyllic.
The property will be renovated and rebranded with an international hotel operator in the coming months. Renovation will cover all 256 rooms as well as the public areas, lobby and the restaurant facilities.
Only 20 minutes from Phuket International Airport, Surin Beach Resort is conveniently located for a weekend break or a week or a longer more relaxing vacation. The resort has 256 elegantly appointed deluxe studios and suites, overlooking a large swimming pool. All have private balconies, are spacious and decorated in contemporary Thai style. The Suite rooms are larger and have adjoining kitchenette. Both have en suite bathroom with shower, while the Suites also have a bathtub.
With a strong family focus, the resort provides plenty for children to do. A supervised kid’s club with playground and organised activities ensures peace of mind for parents while they take time out for themselves. Combined with kid’s pool and waterslides, the resort is one place children will never get bored. A mini mart, business centre, foreign exchange, gift shop, laundry and dry cleaning service, and 24-hour security ensures all facilities are on hand and convenient, making your holiday hassle free and enjoyable.
Gary Murray, CEO of Destination Properties says that, Surin Beach Resort has great potential to be renovated and repositioned as one of the nicest four star internationally branded hotels in Phuket. Surin Beach Resort is ideally located directly fronting Surin Beach and adjacent to the Twin Palms Resort and only 5 minutes away from Amanpuri and the Chedi Phuket. We are in the company of some of Phuket?s finest 5 star properties. The renovated and rebranded Surin Beach Resort will provide guests with great four star accommodation. Branding and management will be announced soon.?
Surin Beach Resort will stay open during the renovations which are expected to be complete in early summer 2007.
Destination Properties currently owns the successful Hilton Hua Hin Resort and Spa, the Shambala Villas Samui and is developing the new Doubletree by Hilton Golf Resort & Spa to be managed by Hilton International located on the Eastern Seaboard in Thailand opening in early 2008. It also owns the Ramada Resort Karon Beach, Phuket and the ALiLA Phuket Resort.
Peter Nilsson General Manager, Soneva Kiri & Six Senses Spa. Peter Nilsson has been appointed general manager of Soneva Kiri the newest resort of the Soneva brand which caters to the very top-end market and with a philosophy of Intelligent Luxury.
Peter takes up this role from his previous position of general manger of Soneva Gili the Maldives first all-over-water resort a sister property of Soneva Fushi in the Maldives, and now Soneva Kiri, located on Koh Kood to the south-east of the Gulf of Thailand. He relocated to Soneva Gili from his previous role as resort manager at Evason Hua Hin, a property also operated by Six Senses Resorts & Spas. By that time, his Asia experience had covered almost a decade and had been accumulated in locations such as Singapore, East Timor, Vietnam and Thailand.
Peter, a Swedish national, began his hospitality career in his home country and in London, then working his way through the ranks in a variety of countries and cultures including Japan, Norway, Singapore and Russia. He accumulated proficiency in several languages during this time. His diverse interests include scuba diving, oriental cooking, marine biology and snow skiing.
''Though many developers have jumped into the hot segment _ budget condominiums clinging to mass transit, we remain focused on townhouses and single houses in the middle-to high-end segments,'' he said yesterday.
Condominium development carries many risks although it can also offer higher gains. Developers need to control costs and construction periods while accelerating sales, as condominiums call for big investment, unlike townhouses and single houses that could be developed phase by phase, he said.
''As a medium-sized developer, we are under no pressure to boost growth, unlike big players. It is a good chance for the relatively less competitive medium-priced housing segment. When the market recovers, we're more ready to launch the products,'' said Mr Wasan.
He added that the company would not invest in new projects this year to reduce risks.
Instead, it would continue the development of single houses priced from 4-10 million baht and townhouses priced at around two million baht each by launching new phases of the existing projects, which cover more than 100 rai.
''By doing so, we are less affected by higher oil prices,'' he said.
The existing projects include Promenade Home Rama II, Neighbour Home Watcharapol, Parkway Chalet Ramkhamhaeng and Garden Suite: The Indy Home Ramkhamhaeng-Ring Road.
''The property cycle is now shorter and narrower than in the past. We have to monitor the fast-changing market more closely in order to be able to change our marketing plan in time. Sometimes, our plan needs to be revised monthly,'' Mr Wasan said.
The company expects the property market to pick up in the second half of the year when it plans marketing campaigns to tap the pent-up demand carried forward from the first half of the year.
''We have been active in every project site. At least, we can grab some market shares from the big players,'' he said.
Apart from the financial campaigns including discounts and waivers of transfer and mortgage fees, it also offers environmental campaigns _ offering green areas in units, water-treatment equipment, air purifiers and power-line impedance stabilisation.
''Given the current market conditions, we will revise down next month our revenue [growth] target for 2007 from 10-15% projected last year,'' he said.
''The government should stimulate consumer spending to keep the economy in shape while tax incentives would slightly stimulate home purchasing.''
A Thai court is set to rule today at 1.30pm to 2.00 pm (Wednesday) on whether the country's top two political parties violated election laws last year. The repercussions are going to be great and will determine if the Kingdom will come out of the current crisis sooner than later. The property market will be also affected in a big way as politics is now dictating where the economy of Thailand is heading. If all goes well, the property market will indeed come out of its doldrums but today's verdict will be crucial to all property players in the Thailand real estate landscape. Sleuth's advice is ... watch the outcome carefully and tread even more cautiously for the short term.
Interesting article from the International Tribune and the Associated Press....
The following is a timeline of events leading up to the court's verdict, which could dissolve the parties and bar their executives from public office:
February 2001 — Thaksin Shinawatra, a telecommunications tycoon, becomes prime minister after his Thai Rak Thai Party gallops to a January election victory with promises to revive the economy and deliver benefits to the country's rural majority.
January 2004 — Muslim radicals launch an insurgency in the southern provinces that by May 2007 has claimed more than 2,200 lives.
February 2005 — Thaksin is re-elected by a landslide, becoming the first Thai prime minister to serve a full four-year term. Critics accuse him of using his majority to crush democratic checks and balances.
January 2006 — Thaksin's family sells its controlling stake in Shin Corp., the telecoms empire he founded, to Singapore's state investment firm, Temasek Holdings, for US$1.9 billion. The deal is criticized because it was structured to avoid taxes and because strategic national assets — including communications satellites — were sold to a foreign government.
February 2006 — Tens of thousands of protesters gather in Bangkok for the first major demonstration demanding Thaksin's resignation. Thaksin dissolves Parliament and calls snap elections three years early in an effort to defuse protests and secure his mandate. The three main opposition parties boycott the vote.
March-April 2006 — Protests grow and become more spirited.
April 2006 — Thaksin's party wins a hollow election victory, and under election rules is unable to convene parliament for lack of a quorum. Thaksin announces after meeting with revered King Bhumibol Adulyadej that he will step aside to help stabilize the situation.
Thaksin's party is accused of election law violations by paying off other parties to sidestep the quorum rule, and the Democrats are accused of covertly encouraging the violations.
May 2006 — Courts annul the election after the king says judges should help end the crisis.
Thaksin returns as caretaker premier after a seven-week break, and struggles to schedule a new election amid increasing legal challenges.
August 2006 — Thaksin accuses several military officers of plotting to kill him after police find a car containing bomb-making materials near his home.
Sept. 19, 2006 — The military stages a coup against Thaksin while he is in New York and declares martial law. It promises a new election in a year after a new constitution is drafted and submitted to a referendum.
A campaign begins to purge Thaksin's influence from Thai society and politics, and several probes are launched into alleged corruption by his family and cronies.
October 2006 — Retired army commander Gen. Surayud Chulanont is appointed interim prime minister. Thaksin, exiled in London, steps down as Thai Rak Thai leader.
Dec. 31, 2006 — A string of bombs in Bangkok kill three people and wound more than 30 as crowds gather to celebrate New Year's Eve. The military and some members of the interim government suggest that supporters of Thaksin are to blame but present no evidence.
January-May 2007 — Public confidence in Surayud's government slips due to mishandled economic policies and a failure to successfully prosecute Thaksin. Thaksin's supporters launch anti-government protests, which meet with threats and denunciations from the military.
March 2007 — Surayud announces that elections can be expected on Dec. 16 or Dec. 22.
May 30, 2007 — Constitutional Court judges to rule on alleged election law violations by Thaksin's Thai Rak Thai Party and its main rival, the Democrats, as well as several minor parties.
From the Bangkokpost
Government efforts to stimulate the property market should not neglect other sectors of the economy says Srettha Thavisin, the president of Sansiri Plc.
Tourism and foreign investment are also areas that need attention, and the government must revive Thailand's image as a foreigner-friendly country.
''Regulations have been enacted that might mislead foreigners,'' he said, emphasising that Thais are not xenophobes, despite foreign investment rules that some feel may be draconian.
Mr Srettha fully supported the planned reduction in the property transfer fee to 0.01% from 2% and special business tax to 0.1% from 3.3%, and urged the government to implement it quickly, rather than raise hopes by just talking.
''[Raising investor hopes] also leads to manipulation in the stock market. Property stocks might rise and then get dumped, so it's better not to talk, if you are going to call a committee meeting or call people in for consultation, do so quietly, it's not good to announce it.
''Best not to talk if you are going to do it then do it, if not then don't.''
However Mr Srettha is optimistic that the protracted political uncertainty will be settled. ''It's Thai people's nature to reach a compromise, eventually all the problems will be resolved, the question is when, that's all.''
Sansiri has been unscathed by confidence-sapping events such as the Dec 31 unscathed Bangkok bombings, and has been able to sell units at all of its projects. One reason for this is falling interest rates, which has encouraged people to seek alternative investment channels.
''People might search for other investments, they might buy other assets that could appreciate in value, they could sell over the long term or give it out for rent.''
As Mr Srettha sees it, the impact of the current turbulence is mainly being felt in the budget condominium segment of the inner city condo market and not at the high-end where his company is positioned.
A good example is the Baan Siri 24 condominium near The Emporium shopping centre that initially fetched 70,000 baht per square metre but now has reached 120,000 baht per square metre.
These gains lead to Mr Srettha's confidence in the face of challenges posed by foreign developers in Thailand.
While condominiums developed by some foreign property developers are not cheap, Mr Srettha pointed out that his company is able to achieve higher prices with its Baan Ratchadamri project almost reaching 200,000 baht per square metre.
''It's good competition, it makes developers who are already in the city with roots here fight harder and become stronger _ the winner is the customer.''
Thai condominiums are much cheaper than in Hong Kong, where prices are five to ten times higher, and if obstacles such as post-financing and ownership status are cleared, then the market can improve.
Fewer than 10% of Sansiri's condominiums are owned by foreigners. ''I am certain many people want to buy but the rules and regulations in Thailand are not clear.''
Mr Srettha is in favour of allowing foreigners to lease land for 60 to 90 years from the legally permitted 30-year term, pointing out that whenever foreign buyers leave they will sell the land to Thais and in the end the land will belong to Thais.
Many developing countries, particularly in Latin America, permit foreigners to buy land outright.
Although there has been speculation that the airport-city rail link could draw development to areas around Phetchaburi and Pattanakarn roads, Mr Srettha believes the link will only benefit local residents and government facilities moving there.
He also speculated that senior executives will continue to live closer to the city and Silom, Sathorn, Wireless and Sukhumvit roads will continue to be prime areas for condominium development even though vacant land has decreased substantially.
Turning to speculators and investors, Mr Srettha said they can buy at their own risk but regardless, location is the most important consideration. Investors should also carefully consider the project's specifications and look at the developer's track record to ensure that they deliver in their promises. They should also be mindful of the fact that there are many first-time developers in the market right now.
''Something that is good will always have value. If something is only trendy, then once completed, if it's not good, then you're in trouble,'' he says.
The W Hotel & Residences – Koh Samui is the first South East Asian property for the W Retreat brand, which is owned by Starwood Hotels.
Analysts says mixed-use developments, which feature both regular hotel-style units and units for purchase, give developers an added sense of security in the event either segment of the market hits a rough patch.
The joint venture between Istihmar and Amburaya will bring the two companies together to finance and build the new property. The retreat will feature 70 villas, W´s signature Living Room and lounge, one signature restaurant, a pool bar and a signature spa. The development will also include 15 luxury villas on the grounds of the retreat which will be available for purchase.
Joe Sita, chief executive of Istithmar Hotels FZE, said: “W Hotel & Residences fits right into our portfolio of luxury hotel brands in key markets around the world.
“For Istithmar Hotels, it is the people with whom we work that make the difference. Amburaya’s team tick all the boxes for us and we know this will be a successful project.”
Sunny Bajaj, managing director of Amburaya Resorts, said: “We wanted to bring in world class financial and operational expertise into this project and Istithmar Hotels were the obvious choice. We expect this to be just the start of a long and expanding relationship.”
Since it was launched in April 2006, Istithmar Hotels has developed a portfolio with a total investment value of approximately US$3 billion. This includes a significant investment in Kerzner Group, the developer and operator of Atlantis Resorts and of One and Only, the luxury resort brand; the master franchise for easyHotels in the Middle East, the Levant, North Africa, India and Pakistan; and ownership of the Knickerbocker Hotel on Times Square, the W Hotel Union Square in New York, Mandarin Oriental in New York and the Hotel Washington in Washington DC.
It recently announced the purchase of a 24.99% shareholding in leading Thai real estate developer, Raimon Land Public Company Limited, as well as a significant strategic investment in International Hotel Investments (“IHI”) plc of Malta.
Richard Johnson, Managing Director of Istithmar’s real estate business, said:“Asia for us is a key region for the development of our portfolio. Thailand is an important strategic market for Istithmar Real Estate within Asia and I am pleased we are able to expand our operations there.”
W Hotels is a global lifestyle brand with 21 properties in the most vibrant cities around the world. Inspiring and indulging its guests with thoughtful, refreshing and stylish experiences, signature restaurants, bars and destination spas, W has become the fastest growing luxury hotel brand in the world. Each hotel offers a unique mix of innovative design, comfort and cultural influences from fashion to music to art and everything in between.
Starwood Hotels & Resorts Worldwide, Inc., the parent company of W Hotels, entered into a management agreement with Amburaya Resorts to manage the new hotel when plans were announced in November 2006.
Amburaya Properties is a Thai based developer bringing new and innovative lifestyle oriented accommodation and residential development to new and well established destinations and currently has properties in Bangkok, Pattaya, Koh Samui, India and continues to look for opportunities to grow their portfolio within Thailand and the region.
From Dubai Real Estate News
Dusit, a reputed hospitality company with headquarters in Thailand, has readied to enter the rapidly expanding Residence / Serviced Apartment segment of the hospitality industry as part of a planned expansion program, both in Thailand and the Middle East. The Dusit Residence on The Palm, Dubai is intricately Moroccan-inspired in style, comprised of 180 two-three bedrooms and townhouses. These private residences will offer an ideal location in one of the world’s most dynamic new tourism and residential real estate developments in Dubai.
The Dusit Residence at Dubai Marina is strategically located and overlooks the marina itself and provides direct access to the promenade. A total of 151 units offer penthouse suites and one to three-bedroom apartments, with a complete range of food and beverage and other complete hotel-style facilities and services.
From the Bangkokpost
The Mall Group Co, the country's second largest department store chain, is bringing upmarket shopping to the west side of the Chao Phraya River where existing establishments cater to the mass market.
A European style similar to The Emporium, another Mall property, is part of the new look at The Mall Tha Phra, where young French designers helped with the renovation, said Chamnarn Mayprechakul, the company's senior chief marketing officer.
The Tha Phra branch will officially reopen on Thursday after being closed for four months for renovation.
The company spent 400 million baht to renovate the store to capture a wider range of customers from the growing communities in the area. About 8,000 new condominium and housing units are due to be completed this year in 2007 in Tha Phra, Rama II, Sathorn and nearby areas.
The Mall Tha Phra will also benefit from improved transport access including the BTS skytrain extension crossing the river.
Nattapong Kijnitchewa, operations manager of The Mall Group, said that in line with the changing makeup of its customer base, the company had expanded the retail space of The Mall Tha Phra by 60% to 40,000 square metres. New retail outlets include international brands such as Lowe, Etude, Quiksilver, Charriol and Daks.
New services such as a 2,500 square metre Fitness First and SF Cinema City with 10,000 sq m were added on the fourth floor, along with an educational centre.There are also plans for a 200-metre skywalk to link the centre to the new BTS Ratchaphruek station.
With the store facelift, The Mall Tha Phra will have a more fashionable, trendy and warm look, aiming to appeal top a more youthful market.
With the new product and service mixes, the company aims to increase shopper visits to around once a week from one or two times a month previously, said Vanchai Janvuttarunggul, group general manager for shopping complexes of The Mall Shopping Center Co.
Mr Vanchai added that shoppers normally spend three to four hours at The Mall Tha Phra and he expected they would stay longer in the near future.
''The Mall's Tha Phra branch will become the destination for shopping in Thon Buri,'' Mr Chamnarn said. ''After reopening our Tha Phra centre, we aim to stop people in Thon Buri from crossing [the river] to shop for some high-end items at retail outlets in Bangkok like in the past.''
The company will spend 20 million baht on marketing to promote the new-look Tha Phra shopping centre from May 31 to July 25.
Mr Chamnarn said the company lost about one billion baht in sales opportunities during the four-month closing for building renovation, which also included repairs to cracks in a large support pillar connecting the ground floor and car park.
The company aims to gain sales of three billion baht from its Tha Phra branch by the end of this year, up 20% from the same period last year.
From the Bnagkokpost
ING Funds (Thailand) has emerged as a potential investor in the long-debated Phuket Convention Centre, which requires a maximum investment of two billion baht. At a meeting with Tourism and Sports Minister Suvit Yodmani and local officials, ING Funds managing director Maris Tarab proposed launching a property fund to raise the money to invest in the centre.
He said ING Funds would launch several property funds this year, including investments in Thammasat University dormitories and Major Cineplex Ratchayothin.
Mr Maris said he had been surveying many land plots in the popular tourist island and found a few potential sites. They include a 350-rai plot in Mai Khao Tambon belonging to the Treasury Department.
According to Mr Maris, the land was a perfect site to build an international convention centre because it's close to the beach and the airport. If the government wants to compete with Singapore, the convention centre should cost about 1.5 billion to two billion baht and hold at least 2,000 participants, he said.
ING Funds, 49%-owned by ING Insurance International BV based in the Netherlands, will find partners and a landlord as well as a management company to run the centre.
''The government does not need to put down its own investment,'' he said.But local businessmen appear unimpressed by the proposal.
Pattanapong Aikwanich, an adviser to the Phuket Tourist Association, said better sites for a convention centre were located close to downtown, which is more convenient.
As the agreement has not yet settled, Dr Suvit informed the meeting that the government would take about 60 days to consider the project and all locations.
The Phuket Convention Centre project was initiated by the last government to help boost tourism to the island during the low season when tourist arrivals are quite low. About four million tourists visit Phuket each year.
The project, being part of the country's logistics strategy development plan, will help complete the rail system for transporting products and goods more efficiently, SRT chief finance officer Arak Ratbariharn said.
Earlier, the Cabinet had approved the double-track rail route from Chachoengsao to Laem Chabang with a budget of Bt5.8 billion.
Arak said having the double-track rail route to Kaeng Koi in Sara Buri would be the connecting point for goods and products being transported from the North and the Northeast.
Moreover, the lines would be constructed at the Kaeng Koi station to make it more convenient for merchandisers to transport goods. This will help boost transport.
"The ministry has emphasised on development and improvement of transport modes by marine and rail systems to facilitate quick and convenient movement of commodities as rice, sugar, tapioca, rubber, and steel at low costs," a source at the Transport Ministry said.
For the fiscal 2007, the projects allocated are the facility development project at the multi-purpose pier with an investment of Bt159 billion, the Bt1.2-billion Chachoengsao-Sriracha, Laem Chabang double-track rail route project, the Bt897-million road link to the Suvarnbhumi Airport and the elevated South road project.
The second Chiang Saen Port project needs an investment of Bt11 million.
The procurement of diesel locomotives for seven trains would require investment of Bt122 million while Bt825 million is allotted for augmenting rail tracks.
Two properties in the central business district (CBD), an office building and a residential project, are under discussion. However, Mr Ross said, it was still too early to indicate whether both sides could conclude the deals.
Pacific Star, with headquarters in Singapore, manages several property funds, including the 500-million Asia Real Estate Income Fund (AREIF) and the US$600-million Baitak Asia Real Estate Fund along with Kuwait Finance House.
Besides Bangkok, the group has offices in Kuala Lumpur, Singapore and Shanghai. It plans to open more sites in Beijing, Sydney, Seoul, Tokyo and Mumbai.
Each office sends investment proposals to the parent company, which then allocates funds from a pool of regional resources. In Thailand, the company wants any CBD properties to earn an internal return rate of 15-20% and a yield of 8-9% per year.
Urasate Navanugraha, an asset manager for Pacific Star International (Thailand), said investments in Thailand must be more selective due to the country's economic and political uncertainties.
He said the group still saw Thailand as an attractive place with more investment opportunities than Singapore, where local developers already have a strong foothold.
The group has already invested five billion baht in two projects in Thailand through the ARIEF. It will soon launch sales of 350 units in the Sathorn Garden condominium on Sathorn Road near the Malaysian Embassy, at prices between 90,000 and 100,000 baht per square metre.
Its other project, RS Tower Thong Lo, will be developed into retail space. The total sales value of the two projects is about seven billion baht.
Mr Urasate said Pacific Star had no set minium investment size, as it depended on whether the company was buying empty land, distressed buildings or company shares.
''If it is an investment in a residential project, the size should be about two to three billion baht because the company focuses on high-quality projects in prime locations in the CBD,'' he said.
"I am very pleased that at the beginning of this month Phuket was named the best marine destination in Asia, but this is not enough for me. My dream is to make Phuket the world's No-1 destination. Some of you may think this is impossible, but some of my friends thought I was crazy when I told them a few years ago that I wanted to make Phuket the top destination in Asia," he said.
"As many of you know, Bill Gates was here last month for two weeks on his 54-metre yacht. He said it was one of the best holidays he had ever had. My dream is to have more people like Bill Gates coming here. All we lack is the facilities for yachts in the 40- to 70-metre range. My dream has been to make an island which can take mega-yachts. I shared my vision with [former] governor Udomsak [Uswarangkura] last year and he likes the idea very much," Lalvani said.
Udomasak was among several dignitaries attending the press conference, held at the Royal Phuket Marina conference room. Also attending were deputy governor Smith Palawatvichai and Tourism Authority of Thailand deputy governor for international marketing Juthaporn Rerngronasa.
Zoran Island, named after one of telecom tycoon Lalvani's sons, would be located about three kilometres offshore near the end of the existing channel to the Royal Phuket Marina. It would have restaurants, shopping and other facilities catering to the needs of the world's super-rich, he said.
Reports in the Thai media that Gates would invest in the Zoran Island project were incorrect, he said.
"I want to put the record straight on that it will be my investment, not that of Bill Gates," Lalvani said.
Asked what he expected to be the biggest obstacle to turning Zoran
Island from a dream into a reality, Lalvani said he had met with officials from the Marine Department earlier in the day and that he had hired an Australian consulting firm to conduct
an initial survey of the proposed project site.
"The government is pro-tourism,
but of course they have to check out that this is the right location … There don't seem to be any obstacles, but we will have to go through proper procedures," he said.
"Because we have a temporary government at the moment, officials tend to delay making decisions … In the past, I had very fast decisions from the governor, but this year we have a temporary government that has other priorities. But I believe that once the survey is done it is only a matter of time before we get there.
"The islands that surround Phuket are the most beautiful in the world.
I am so confident that I have fully funded this entire project with my own money ... there is not one baht of borrowing. So I have total confidence in Zoran Island being a long-term success."
Juthaporn hailed Phuket for being named as "Asia's Maritime Capital" and the Phuket King's Cup Regatta being named "Yachting Event of the Year" at the Christofle Asia Boating Awards in Bangkok last month.
Evidence of Phuket's post-tsunami recovery and continued growth is reflected in tourist arrival figures, she said.
There were 4.5 million visitors to Phuket in 2006, up 79 per cent from the post-tsunami 2005. First-quarter figures for 2007 showed a year-on-year increase of 26 per cent, she said.
Also increasing were the number or direct flights to Phuket, including scheduled flights from places such as Australia and Hong Kong.
A rise in the number of charter flights scheduled to arrive from Europe in upcoming months reflects the fact that Europeans are beginning to view Phuket as more of a year-round destination than just a winter getaway, she added.
More good news comes with an increase in the number of cruise ships scheduled to include the island on their itineraries.
Among the newcomers are Seabourn and Carnival cruise lines, Juthaporn said.
Further details of Zoran Island's construction and projected costs have not been announced, but based on computer models released by Lalvani, it appears that the island will be capable of mooring at least 40 yachts and about 10 mega-yachts.
The design calls for a ring of villas surrounding a hotel and man-made bay.
Government efforts to stimulate the property market should not neglect other sectors of the economy says Srettha Thavisin, the president of Sansiri Plc.
Tourism and foreign investment are also areas that need attention, and the government must revive Thailand's image as a foreigner-friendly country.
''Regulations have been enacted that might mislead foreigners,'' he said, emphasising that Thais are not xenophobes, despite foreign investment rules that some feel may be draconian.
Mr Srettha fully supported the planned reduction in the property transfer fee to 0.01% from 2% and special business tax to 0.1% from 3.3%, and urged the government to implement it quickly, rather than raise hopes by just talking.
''[Raising investor hopes] also leads to manipulation in the stock market. Property stocks might rise and then get dumped, so it's better not to talk, if you are going to call a committee meeting or call people in for consultation, do so quietly, it's not good to announce it.
''Best not to talk if you are going to do it then do it, if not then don't.''
However Mr Srettha is optimistic that the protracted political uncertainty will be settled. ''It's Thai people's nature to reach a compromise, eventually all the problems will be resolved, the question is when, that's all.''
Sansiri has been unscathed by confidence-sapping events such as the Dec 31 unscathed Bangkok bombings, and has been able to sell units at all of its projects. One reason for this is falling interest rates, which has encouraged people to seek alternative investment channels.
''People might search for other investments, they might buy other assets that could appreciate in value, they could sell over the long term or give it out for rent.''
As Mr Srettha sees it, the impact of the current turbulence is mainly being felt in the budget condominium segment of the inner city condo market and not at the high-end where his company is positioned.
A good example is the Baan Siri 24 condominium near The Emporium shopping centre that initially fetched 70,000 baht per square metre but now has reached 120,000 baht per square metre.
These gains lead to Mr Srettha's confidence in the face of challenges posed by foreign developers in Thailand.
While condominiums developed by some foreign property developers are not cheap, Mr Srettha pointed out that his company is able to achieve higher prices with its Baan Ratchadamri project almost reaching 200,000 baht per square metre.
''It's good competition, it makes developers who are already in the city with roots here fight harder and become stronger _ the winner is the customer.''
Thai condominiums are much cheaper than in Hong Kong, where prices are five to ten times higher, and if obstacles such as post-financing and ownership status are cleared, then the market can improve.
Fewer than 10% of Sansiri's condominiums are owned by foreigners. ''I am certain many people want to buy but the rules and regulations in Thailand are not clear.''
Mr Srettha is in favour of allowing foreigners to lease land for 60 to 90 years from the legally permitted 30-year term, pointing out that whenever foreign buyers leave they will sell the land to Thais and in the end the land will belong to Thais.
Many developing countries, particularly in Latin America, permit foreigners to buy land outright.
Although there has been speculation that the airport-city rail link could draw development to areas around Phetchaburi and Pattanakarn roads, Mr Srettha believes the link will only benefit local residents and government facilities moving there.
He also speculated that senior executives will continue to live closer to the city and Silom, Sathorn, Wireless and Sukhumvit roads will continue to be prime areas for condominium development even though vacant land has decreased substantially.
Turning to speculators and investors, Mr Srettha said they can buy at their own risk but regardless, location is the most important consideration. Investors should also carefully consider the project's specifications and look at the developer's track record to ensure that they deliver in their promises. They should also be mindful of the fact that there are many first-time developers in the market right now.
''Something that is good will always have value. If something is only trendy, then once completed, if it's not good, then you're in trouble,'' he says.
Sales of new homes easily accessible to mass transit system routes recently approved by the government should help improve Bangkok's battered and sagging property sector, currently beset by political and economic challenges, according to a leading real estate appraisal executive.
Agency for Real Estate Affairs president Sopon Pornchokchai said bidding for the construction of the Red Line connecting Rangsit, Bang Sue and Talingchan is expected to be held in July and should be a blessing for the property sector.
Current political and economic crises have already lowered average housing prices by approximately 25 per cent during the first quarter of this year, Mr. Sophon said.
And government measures aimed at stimulating housing sales are not very fruitful because the public is cautious on spending while businesses are reluctant to invest, he said, adding that housing values are anticipated to fall about 20 per cent in 2007.
Political problems will worsen if the general election scheduled for December is postponed, Mr. Sophon said. And furthermore, the economy would be negatively affected for a long period if any new government formed after the election is not stable.
"Your organization will never get better unless you are willing to admit that there is something wrong with it." Normal Schwarzkopf, general
