Novotel Beach Resort Panwa sold in THB870 million deal

Phuket Property

Novotel Panwa

The troubled Novotel Beach Resort Panwa has finally been sold in a deal worth more THB870 million.

The Board of Directors of owners Natural Public Park Company Limited (N-Park) approved the sale to Ton Vassana Company Limited last month.

In details released to the Stock Exchange of Thailand, Natural Hotel Panwa Company Limited sold land and construction under mortgage, and other assets related to the Novotel Beach Resort Panwa Phuket to Ton Vassana Company Limited. The purchaser paid THB200 million in cash while the the remaining amount of THB670 million was assumed liability to repay the principal, accrued
interest and other amounts outstanding under Debentures certificates.

The 216-room development has 77 rooms in phase one of its development, with another 72 rooms under construction in phase two. Construction of the combined phase one and phase two at the four-star development stands at 75 per cent.

The new owner, according in formation from the Stock Exchange of Thailand, plans to continue to invest and run this business as a resort.

Commenting on the sale, the Board of Directors said: “Selling Novotel Beach Resort Panwa Phuket at the price higher than book value will be beneficial to the Company, whereby the Company will immediately realize the gain on sale of assets, lessen the debenture burden and reduce legal fees and lawsuit against Lehman Brothers. In addition, the sale of assets will increase the working capital and financial stability. The Company will use the cash receive from sale of assets as working capital and invest in its real estate projects.”

The company had previously explained it had been unable to complete construction of project because of the insolvency of Lehman Brothers Commercial Corporation Asia Limited, partner in its subsidiary company.

In 2009 The Bangkok Post reported that cash-strapped N-Park was seeking funds to complete the second phase of the resor. One of the project´s investors, Lehman Brothers collapsed leaving the company THB285 short of the cash n$eeded to complete the project.

SOURCE: Property-Report

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