Singha considering taking over Pace projects
SET-listed developer Singha Estate Plc is keen to take over projects owned by SETlisted developer Pace Development Corporation Plc, which is being forced to repay loans to Siam Commercial Bank (SCB).
Nattavuth Mathayomchan, Singha’s chief residential development officer, said the company studied all of Pace’s property projects, which are in the high-end segment, and found the land bank is best suited to being developed.
“A sold-out project where construction has not started is not attractive as it requires construction management, which we have to assess further,” he said. “For projects with remaining units for sale, attractiveness will depend on prices.”
Singha, along with SET-listed developer Sansiri Plc, have expressed interest in buying Pace’s projects from SCB after Pace recorded hefty financial liabilities and bills of exchange.
Sorapoj Techakraisri, Pace chief executive, was not available to comment on reports of SCB inviting other developers to buy Pace’s projects.
Pace has a land bank sized 2.5 rai on Narathiwat Ratchanakharin Road, near Chan Road, that it bought for 400 million baht in late 2015.
Mr Sorapoj said last July the company would develop ultra-luxury condominium project Wind Shell, worth 3.5 billion baht, on the plot.
The project of more than 40-storeys would have only 36 units priced at 85-100 million baht or between 180,000-220,000 baht per square metre. The project’s initial design was displayed at its sales gallery at MahaNakhon’s Cube mall.
Pace has three other projects on hand, including The Ritz-Carlton Residences Bangkok at MahaNakhon, which it reported in March as 75% sold, with 7 billion baht pending in revenue recognition.
There is also luxury resort home project MahaSamutr, worth 4 billion baht, which was 30% sold, with 1.4 billion baht waiting revenue recognition.
Pace has luxury condominium project Nimitr Langsuan worth 7.5 billion baht, which was sold out, but has yet to begin construction.
Mr Nattavuth of Singha Estate said that Singha is seeking opportunities to invest in property projects in Thailand and overseas.
Yesterday it launched The Esse Sukhumvit 36, a luxury condominium project worth 6.5 billion baht which is a joint venture development with Hong Kong-based developer Hong Kong Land.
Located on a 2.5-rai plot on Sukhumvit Road near Sukhumvit Soi 36, the project will comprise 338 units on a 43-storey building with units sized 38.5-252 sq m and priced 330,000 baht per sq m or from 12 million baht a unit.
Of the units, 48 worth 1 billion baht were sold in bulk to a Singaporean agent to sell in Singapore, Hong Kong, Taiwan, China and Malaysia. Half are expected to be sold by the end of the year.
In 2018, Singha plans to launch three new residential projects worth a combined 15 billion baht. One of them will be a super-luxury single detached housing project worth 5.5 billion baht on KasetNawamin Road, with units priced from 200 million baht.
S shares closed yesterday on the SET at 3.96 baht, up 10 satang, in trade worth 144 million baht, while PACE closed at 1.28 baht, up 18 satang, in trade worth 455 million baht.