No signs of slowdown in Bangkok land, property transactions
- Friday, June 25, 2010, 12:10
- Bangkok, Thailand
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Property Transactions full steam ahead?
The most notable transaction during the period, according to the report, was the sale of 34,000 sqm of strata title offices in Serm Mit tower on Sukhumvit Soi Asoke by Lasalle Investments to S.P. Building Co., Ltd. The transaction price was approximately THB 1.5 billion, or equivalent to approximately THB44,117 (US$1,360) per sqm.
Values of prime land plots in the central Phloenchit area have risen above 2008’s record levels, to a new peak of THB1.5 million per square wah. As previously reported Sansiri Public Company Limited acquired 2-rai plot adjacent to the American ambassador’s residence on Wireless Road. The total transaction value was THB1.2 billion (US$37 million), while Raimon Land has apparently sold 2-3-42 rai out of a total of approximately 9-rai on their Ploenchit site.
The Thai Commercial Investment Fund (TCIF) plans to launch a freehold property fund investing in the Nation Tower Building, which consists of three office buildings and one car park building during Q2 2010. The subscription period for the IPO was March 15-23, 2010. The fund had a market capitalization at IPO of approximately THB1.96 billion, with par value of 10 baht per unit. The fund will offer a minimum guarantee return of 4-5% for three years.
During the first quarter of 2010, the Thai economy continued to improve with many economic indicators showing a ‘V’ shaped recovery. The National Economic and Social Development Board expected GDP in this quarter will increase around 6 per cent year-on-year. Thailand’s equity markets have gained about 7 per cent since the beginning of the year.
During the quarter property funds offered investors annualized yield of between 4.8 per cent and 11.2 per cent. There was no new Property Fund listed on the Stock Exchange of Thailand during the quarter.
SOURCE: Property-report.com
