Chao Phraya : Riverfront Development

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Thailand’s Raimon Land to build The Vue boutique mall on Chao Phraya banks
Mar 22, 2011


A rendering of Raimon Land's The Vue boutique mall project.

Luxury property developer Raimon Land will invest THB300 million (US$9.9 million) to open a boutique fusion mall adjacent to its The River condominium project along the Chao Phraya by the end of this year.

The Vue, located by The River’s main road entrance on Charoen Nakorn Road, will be comprised of four-stories featuring a selection of restaurants and specialty retail shops catering primarily to residents of The River and to the neighbourhood’s increasingly affluent community.

The Vue project also marks the start of Raimon Land’s new business line. It is expected to generate a profit of THB22 million (US$727,000) per year. Newly-established Raimon Land Investments (RLI) will be in charge of the development and management of new income-generating assets adjacent to Raimon Land’s residential properties.

“This is the first time that we are adding a boutique shopping mall alongside our property development,” said Hubert Viriot, Raimon Land’s chief executive officer. “We foresee two key benefits to this diversification: first, it enables us to offer additional services to our clients.

Secondly, we anticipate that income-generating assets such as Vue could contribute 10-15 per cent of our revenue within the next few years. RLI will look for similar opportunities to enhance our future projects, as we are convinced it will help us face the cycles of the property development business and consolidate our profile.”

property-report.com

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Bangkok developer CGD planning massive riverfront project
Mar 22, 2011


The Landmark Waterfront project will revitalize the Yannawa district of Bangkok.

Newly formed Thai property firm Country Group Development Plc (CGD) is planning to invest nearly THB14 billion (US$462.9 million) to develop two projects in Bangkok this year.

Roughly THB12 billion (US$396.8 million) will go into the Landmark Waterfront Project, comprised of a five-star Capella Hotel with 101 rooms, 73-room Capella Residences Condominium with 352 units, and a five-star hotel Jumeirah Hotel, The Bangkok Post has reported. The site, which formerly housed the Fish Marketing Organisation, is located on a 36-rai plot in Bangkok’s Yannawa district on the banks of the Chao Phraya River. The land will be leased from the Crown Property Bureau for 75 years.

The second project, the Elements Srinakarin condominium, is located on a 13-rai site on Srinakarin Road. CGD is paying THB300 million (US$9.9 million) for the land while the 1,112-unit building is expected to cost THB1.5 billion (US$49.6 million) to build.

CGD plans to move to the Stock Exchange of Thailand and increase its capital by THB3.2 billion (US$105.8 million) to total THB7.5 billion (US$248 million), Managing Director Ben Taechaubol said. The funds will be used to acquire assets of Landmark Development Group.

The Taechaubol family will take the biggest part of the capital increase, with its stake increasing to nearly 50% from about 20%.

“To fund the projects, we will use project finance from financial institutions with a target debt-to-equity ratio of not higher than 1.5 times,” Mr. Ben said. “Now we have zero debt and 250 million baht in cash, enough to start up development.”

property-report.com

[Khun Custard]

Spent 2 days looking around Silom, Sathorn and Yannawa district a few weeks ago assessing condos in the 70,000 - 90,000 Baht/sq.m. // 10- 5 year old range.

Seemed (well, by what the property management people on site told us) that most of the existing are only achieving 50% occupancy - the vacancies mostly relate to investment / rentals that tennents can't or will not rent at current prices being asked.

Add a thousand new condos on the market and the ROI doesn't look that flash for the next few years even if their is a new high end shopping mall adjacent.

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and the ROI doesn't look that flash for the next few years

well long term is even worse given the city is sinking and sea levels are rising ....................