CSA aims to seal deals worth $45m
Real estate advisory and asset management firm Capital Solution Asia (CSA) plans to seal four property deals worth a total of US$45 million over the next 12 months from foreign investors investing in the country for the first time, after initiating a deal for Thailand’s first Tesla showroom earlier this month.
Simon Dervillé, managing partner and executive director at CSA, said Thailand is recognised as one of the most attractive countries in Southeast Asia for foreign investors, including those coming to the country for the first time.
“All four deals are from new investors to Thailand, though they are familiar with the country,” he said.
“We had discussions with them several months ago, and they have expressed no concerns since then regarding the establishment of a new government.”
The first deal refers to a Singaporean international school operator which is seeking to expand an International Baccalaureate (IB) school for 800-1,200 students in Bangkok as it has seen strong demand from Thai parents as well as some foreign ones.
“The international school operator requires a brownfield development as it offers a faster timeline for opening compared to a greenfield project,” he said. “We are currently in talks with an existing school to acquire and upgrade its facilities for our client.”
The investment budget for the acquisition and renovation is around US$10 million, to be invested by Blue Fortress Partners (BFP), a Singaporebased investment consortium serving as CSA’s exclusive partner.
Meanwhile, the international school operator will lease the property from BFP over a period of 20 years.
The property will be delivered within the third quarter of 2023, said Mr Dervillé.
“CSA will handle site sourcing, property acquisition and renovation work to offer turnkey rental properties for tenants looking to enter or expand their presence in Thailand, while BFP will provide funding for property acquisition and renovations,” he added.
The second deal, with an investment budget of $10 million, will be a data centre in which an Asian data centre operator will establish a joint venture with a local partner.
CSA is evaluating three locations along the Kanchanapisek Ring Road for the data centre deal.
The primary factors under consideration include flood prevention measures, proximity to two electricity sub-stations, and floor loading capacity.
“The data centre investment will be a greenfield development due to floor loading capacity,” he said. “The tenants require a land plot of five rai to develop a data centre with a floor load capacity capable of supporting 2,000 kilogrammes per square metre.”
The third deal, with an investment budget of $10 million, will be the acquisition of an office tower located on the Kanchanaphisek Ring Road, with a usable area of 10,000 sq m for a single tenant in the distribution business.
The fourth will be the acquisition of an apartment located along a BTS or MRT line for an Asian-based hotel operator which wants to have a 150-room hotel in Thailand. The investment value for this project is estimated to be $15 million, said Mr Dervillé, who was previously deputy vice-president for business development at Raimon Land Plc.