Raimon Land chief denies back-door listing allegations
The 2.5-billion-baht acquisition of two land plots and unsold condo units from KPN Land Co, a property arm owned by the Narongdej family, is not a back-door listing by the family, insists Adrian Lee, chief executive of SET-listed developer Raimon Land Plc (RML).
“If [shareholders of ] KPN Land buy additional RML shares in the future [and become new major shareholders], we cannot control them anyway,” Mr Lee said yesterday. “Now I can say that we will work with them together in residential development in the future.”
RML’s major shareholder is
JS Asset Management Pte Ltd, wholly owned by Chye Tek Lee, who is Mr Lee’s elder brother, with a 24.98% stake. After him is Jirawut Kuvanant, president of Kowyoohah Group on 19.35%.
After the deal with KPN Land is completed in November this year, the stakes of the two largest major shareholders will decrease to 21.40% and 16.58% respectively.
KPN Land will be No.3 with a 14.31% stake and will also send two executives to sit on RML’s board of directors, Mr Lee said.
Last Thursday, Raimon Land reported to the Stock Exchange of Thailand that its board of directors had resolved to acquire two plots from KPN Land with a total value of 1.57 billion baht.
The payment will be made with 500 million baht in cash and 597 million newly issued ordinary shares at a par value of one baht each, or equivalent to 14.31% of the company’s paid-up capital after the increase in registered capital, with the offering price of 1.80 baht per share, equivalent to 1.07 billion baht.
The plots will comprise a two-rai site on Sukhumvit Soi 28 and a one-rai of land on Sukhumvit Soi 19. Raimon Land will hold 51% in the Sukhumvit Soi 19 plot. The other 49% is held by Singaporean developer Keppel Land.
Raimon Land will get unsold, ready-totransfer condo units with a total sales value of 2.5 billion baht, comprising 107 units at Diplomat 39 and nine units at Diplomat Sathorn. They will be realised as revenue once they are sold, Mr Lee said.
“With this transaction, we can acquire assets with minimal cash flow and enlarge our portfolio, added to the two KPN Land brands, including Diplomat and The Capital, they will give us to use after the deal,” he said.
Currently, Raimon Land’s debt to equity ratio is 1.4, he added. Future condo projects it plans to develop will either be its own investment or through the joint venture with Japanese property firm Tokyo Tatemono.
At least four new sites worth a combined total of more than 16 billion baht will be through the j oint venture with the Japanese partner. Two will be launched in the second half, being located on Sathorn Soi 12 and Sukhumvit Soi 26.
The other two will be for next year, comprising a plot on Sukhumvit Soi 38 and a site in the Ratchathewi area.
The Sukhumvit Soi 28 plot will be put on hold for at least three years due to local complaints, Mr Lee said.
Raimon Land expects to have 4.62 billion baht in revenue by the end of 2018, up from 2.86 billion baht last year. However, revenue will decline to 3.84 billion baht and 3.3 billion baht in 2019-20 respectively before jumping to 6.15 billion baht and 9.21 billion baht in 2021-22.
RML shares closed yesterday on the SET at 1.45 baht, up one satang, in trade worth 9.3 million baht.