One of Bangkok’s most desirable high end projects, Raimon Land’s 185 Rajdamri will be launched in the second half of 2010 according to the developer. The 4 rai, 240 unit development which is one of the only freehold sites in premium area and is expected to raise THB 9.7 billion in revenue.

Also looking to come on stream within 12 months is The Edge, a luxury condo in Pattaya. Despite the global economic downturn for the past two years, Bangkok’s top tier residential market has continue to flourish and trade a increasingly higher prices.

Source : thephuketinsider.com

Raimon Land CEO

The previously troubled company has almost completed a financial restructuring, resolved its “internal issues” and is ready to move forward with greater confidence, he said.

Mr Viriot was appointed CEO in March, replacing Nigel Cornick who resigned under a cloud of controversy and falling sales figures. At the time, the company postponed the launch of three projects and industry observers speculated that its flagship project The River, a 15-billion-baht 838-unit development, was in trouble.

Since then, the former vice-president of investments and acquisitions at Kuwait-based IFA Hotels and Resorts, Raimon Land’s major shareholder, has implemented a “sound, but substantial” rehabilitation plan that has cut the company’s operating costs by 40%.

The most significant part of the plan is to repay or refinance the developer’s short-term debt with banks, which stood at 1.67 billion baht at the end of the third quarter. The company expects the process to be completed by next March.

“That [starting to repay/refinance the debt] gave a lot of stability to the company and enabled it to look beyond the week after next,” he said.

Raimon Land in August bought back a 25% stake in Taksin Hotel Holdings, The River’s holding company, from Lehman Brothers Bangkok Riverside Development Ltd, which was unable to fulfil its debt obligations. This increased the developer’s stake in the company to 85%, with IFA holding 15%.

Raimon Land also slashed its marketing budget in 2009 to 4% of revenue from 11% the year before.

“We had to create a more efficient organisation to take care of fewer projects and get ready for a year that we knew would be tough,” he said.

In the first nine months of the year it reported a net loss of 55.6 million baht compared with a profit of 145.78 million for the whole of 2008.

As of September, the company had 9.57 billion baht in assets, liabilities of 6.91 billion, equity of 2.57 billion, and paid-up capital totalling 3.25 billion.

“While we will finish the year on a loss, Raimon Land now has a sound business plan with sound projections and we will continue to build our position within the market,” he said.

IFA increased its stake in the developer by 14.92% to 41.08% when Isthitmar Hotels Fze – a subsidiary of the beleaguered investment arm of Dubai World – divested its shares last August. The buyout effectively reduced the developer’s direct exposure to the Dubai market crash to zero, he said.

The developer is currently consolidating its assets as the final step of its rehabilitation plan. The firm currently owns from 51% to 100% of its projects.

“We realise this has caused some confusion in the market over whether we are a fee developer or an investment developer,” said Mr Viriot. “We’re currently somewhere in the middle and we will have to go one way or the other.”

After more than a decade of developing foreigner-focused projects, and having closed its sales office in Russia, the firm will now target Thai buyers.

“We will continue focusing on luxury but we are now looking at 28- to 40-year-old Thais … in Thailand’s biggest, most sustainable market, which is Bangkok.”

The firm will also focus on large-scale projects, such as The River. The 200,000- square-metre project with 105,000 sq m of saleable space has sold 62% of its units, passing the 9-billion-baht break-even point, he said.

With two years to go before transfer, Mr Viriot said he has no concerns about the project failing to sell out.

The value of The River is equivalent to Raimon Land’s six other projects in Phuket, Pattaya and Bangkok.

The developer has also acquired a plot on Phloen Chit Road for about 2 billion baht, where it plans to develop another large-scale property.

“These kind of projects may require partners simply because, due to their size of 150,000 to 250,000 sq m of floor area, they may include different components [residential, retail and commercial],” he said.

Outside Bangkok, Raimon Land is still selling completed units at Northpoint in Pattaya and The Heights in Phuket, which have about 20% of units left unsold.

SOURCE: Bangkok Post

The 376-unit development located on Wong-Amat beach offers luxury units, duplexes and penthouses ranging in size from 50 to 800 square metres. It was recognised as the Best Condo Development on the Eastern Seaboard at the Thailand Property Awards 2008, and also boasts Thailand´s number one golfer Thongchai Jaidee as an owner.

Raimon Land Chief Executive Officer, Hubert Viriot, said the selection represented Raimon Land’s vision for Pattaya as a high-end, outdoor lifestyle destination.

He said: “We are thrilled to team up with Savills Thailand as property managers and leasing agents for our Northpoint development, as they have both an in-depth understanding of the Pattaya property market and a highly successful track record in managing high-end residential projects, making them the ideal choice.”

SOURCE: Property-Report

The two remaining units of The Heights, the company’s luxury condominium in Phuket, will be offered at 2.7 million baht for a share of a 220-square-metre unit, and 4.7 million baht for a share of a larger unit of 410 sq m.

Each unit is divided into 13 saleable fractions. Each fraction allows its owner to spend 21 days per year and to also have access to more than 160 properties under the IFA Collection and the Registry Collection property networks worldwide.

The Heights is among three projects under Private Residence Clubs that Raimon Land plans to sell on fractional ownership basis. The company expects to sell at least five units of its Northpoint condo in Pattaya and at least 40 units of The River in Bangkok in the near future.

The Heights Phuket

It hopes to close sales of the first two units within six months.

Patrick Hanes, Raimon Land’s consultant for Private Residence Clubs, said the new product would help add diversity and speedy sales.

Unit prices sold under fractional ownership are higher than the equivalent price for full ownership. For example, the three-bedroom unit of the Heights is normally priced at 41 million baht, but the unit could earn up to 61 million baht when divided into fractions.

“The fractional ownership concept has been popular in the United States in the last 10 years and makes US$2 billion each year,” he said.

Raimon Land recorded a loss of 54.56 million baht in the first nine months of this year compared with net profit of 60.5 million a year earlier. Revenue totalled 2.59 billion baht, up 27% from 2.041 billion in the same period last year. Net profit in the third quarter rose by 143% to 171 million baht on revenue of 1.06 billion, up 22% year-on-year.

RAIMON shares closed yesterday on the SET at 31 satang, down one satang, in trade worth 6 million baht.

SOURCE: Bangkok Post

Thongchai Jaidee

As a brand ambassador for Raimon Land’s luxury Northpoint project, Thongchai Jaidee has selected the exclusive Northpoint condominium as his home of
choice when he is taking time out from travelling to compete in some of the world’s most prestigious tournaments.

“I’m delighted to have chosen Northpoint. Outside the tournament season, I like to spend time relaxing with my family, and Pattaya offers us everything we need,” said the winner of numerous Asian and European PGA tournaments.

“Wong-Amat is the most picturesque and secluded beach in Pattaya, and there are over 20 championship golf courses just a stone’s throw away. I can’t wait to move-in.”

Raimon Land Chief Executive Officer, Hubert Viriot, said: “Pattaya is one of the top golf destinations in South East Asia. We are thrilled to have Thongchai Jaidee as a resident. His success provides a great boost in raising awareness in Thailand as a leading golf and luxury lifestyle destination among local and overseas golfers.

Mr Thongchai is also at the forefront of a new promotional campaign for the up-market twin-tower condominium complex. Customers purchasing a unit from October 1 to February 28, 2010, will receive a complimentary Northpoint Lifestyle Package valued at more than THB150,000. The package includes a two-year membership at the elite Siam Country Club golf course, which regularly hosts world-class golfing events and tournaments. The club boasts 36 championship holes and is just 20 minute’s drive from Northpoint.

Northpoint residents will also receive vouchers for a two-night stay in a five-star Pattaya hotel, stylish fine dining at a luxury restaurant, and an upmarket local spa.

“Pattaya is a destination in itself and Northpoint is set to become a core residential feature of the city. The fantastic package we are offering is just the tip of the iceberg of what Pattaya offers to our residents all year round in terms of outdoor activities, fine dining and wellness and spa escapes”, said Viriot.

Recognised as the “Best Condo Development Eastern Seaboard” at the Thailand Property Awards 2008, Northpoint sits on 12 rai of landscaped gardens along 80 metres of Wong-Amat beachfront, and offers a mix of luxury units, duplexes and penthouses as well as a generous array of facilities including sky gardens, a fitness centre, swimming pools, a kid’s pool and slider, and tiered sun decks.

Northpoint will be showcased at the upcoming sales exhibition at Central Festival Pattaya from October 22 to November 2. Space: 2/F. (Zone P2D)

Raimon Land

Some observers are concerned that the 2008 global financial crisis may affect the Thai real estate market. Many see similarities between the current US crisis and the 1997 Thai crisis, particularly in the role played by an over-built real estate sector. To properly analyze the 2008 global financial crisis’s impact on the Thai real estate market, we should first look at the current Thai real estate environment. The Thai real estate industry has grown significantly since the 1997 financial crisis. Although speculation is prevalent in some sectors, we have not experienced a 1997 bubble-like boom. Generally, a real estate bubble occurs when property prices rise quickly in a short period, primarily from speculation – resulting in a supply-and-demand imbalance. When property prices are rising faster than the cost of money and banks continue increasing loan-to-value ratios, funding becomes easier – propelling additional speculation.
The completion of the Suvarnabhumi-Bangkok International Airport has spurred growth in commercial property markets in eastern Bangkok as well as in the beach resort of Pattaya. Thailand has become even more accessible by air with a wide range if International carriers using Bangkok as a hub. In recent years, there has also been a surge in budge carriers, offering very competitive prices to both local and international destinations.

Compared to 1997 Real estate companies are able to respond much more quickly to changes

Thailand’s property market was able to rebound from past crises and there is every reason to believe it will be able to absorb the blow of recent political tensions. The taxation situation has actually improved the conditions for purchasing property in Thailand, and if property prices do dip slightly as a result of the current situation it may actually be a good time to buy as there is a very real possibility Thailand property will regain its golden outlook soon. As a result, the financial condition of most major housing developers in Thailand is much more robust than in the past. The development of the local bond markets and increasing domestic savings has the made the industry much less dependent on foreign funds, a significant difference from 1997.

Any fall in domestic savings will impact Thai Real Estate Market corporate funding and investment. Mortgage loans will be more difficult to obtain : The slowing economy will force Thailand’s banks to be more restrictive in their lending practices. Mortgage loans will be more difficult to acquire with rejection rates rising. Lower supply : Responding to slowing market conditions, developers will lower their risks by building fewer homes and reducing supply. New housing supply will also be reduced because developers will have more difficulty obtaining equity, bond and credit market financing because of the global financial crisis. Lower construction costs : The slowing global economy will result in lower construction materials costs as global demand for these materials decreases. Investors and speculators become sellers : Although current investment and speculative demand is still low, it is prevalent in some condominium-markets and tourist- property categories.Speculators expect to generate profits from price appreciation. If prices do not appreciate as expected on Thai Real Estate Market, they become sellers.

SOURCE: Property Report

The firm has launched three “Private Resident Clubs”, under which units are divided into 13 saleable fractions. Each fraction entitles its owners to enjoy at least 21 days per year at the chosen club, as well as unlimited use of space if it is available.

Ownership is in perpetuity, and shares can be sold at any time.

Owners will also have access to more than 160 properties under the IFA Collection and The Registry Collection property networks. Members of the two collection programmes also have reciprocal rights to book the three additional new properties in Thailand.

Raimon Land will commit 51 units from three projects – The Heights in Phuket, Northpoint in Pattaya and The River in Bangkok – to the club, said Mr Viriot.

The company had no details of pricing as of yesterday.

“We have given ourselves the option of expanding the programme as the market demand dictates,” he said. “We anticipate demand from three market areas: Thai nationals, expatriate foreigners and repeat foreign tourists.”

The Registry Collection Programme is a global network with more than 35,000 members and more than 130 affiliates. The programme is operated by Group RCI, the worldwide leader in vacation exchange and the European leader in holiday rentals, and part of the Wyndham Worldwide group.

The IFA Collection is a luxury portfolio of international properties developed by IFA Hotels & Resorts, a major shareholder in Raimon Land, which specialises in developing mixed-use resorts.

Raimon shares closed unchanged yesterday on the Stock Exchange of Thailand at 40 satang, in total trade worth 4.4 million baht.

SOURCE: Bangkok Post

The new department was officially unveiled at the International Property Show held in Moscow from November 10 to 12, where Raimon Land showcased three of its flagship projects – The River, The Lofts Southshore and The Heights Phuket.

Raimon Land Chief Executive Officer, Nigel Cornick, said: “The launch of the Russian Department is central to our long-term plans to better serve Russian investors, who are well suited to purchase our luxury developments.

“Interest from the Russian market in our high-end projects in Bangkok, Pattaya and Phuket is strong and we expect demand from wealthy Russians to persist even in these uncertain times.”

Since 2006, Russian and CIS residents have purchased Bt745 million worth of real estate from Raimon Land to account for 23 percent of all condominium purchases from the company.

These sales figures coincide with the growing number of Eastern Europeans – a 65 percent leap in 2006 and another 45 percent in 2007 – visiting Thailand, and their destinations of choice closely align with Russian and CIS buyers’ preferred locales; 63 percent of their Raimon Land property purchases were in Pattaya, 28 percent in Phuket and just 9 percent in Bangkok.

Director of the CIS Countries team Vadzim Tsitou, who is heading the new unit, added: “Setting up this department will show Russian buyers that Raimon Land is a serious upscale property developer that can meet their needs, grow their investments and deliver strong capital gains or rental returns for their properties.”

SOURCE: Property-Report.com

According to the report:
Thailand´s property sector is showing signs of an early recover, as selective investors return to purchasing real estate stocks and actual property.

The condominium market appears to be recovering, as all major developers reported stronger Q1/09 presales after a dismal Q4/08.

Developers are also enjoying lower construction and material costs alongside a selection of reasonable priced, quality land plots in 2009, but banks remain cautious in releasing new loans for condominium projects.

Condominium development indicators for Q1/09 reveal:

* Presales more than doubled those in Q4/08, signaling the market has already bottomed out.
* Construction costs by gross floor area (GFA) have fallen more than 10% since Q3/08.
* However, the drawdown on new loans tumbled 36.5% to THB1.8 billion from last year´s THB2.9 billion.

A drastic reduction in the condominium launches is taking much of the blame for slumping presales, and cancellations and returns led to negative presales in Q4/08. However, more projects launched in early 2009 are reporting good presales.

Despite the poor market sector performance in 2009, the report notes signs in 2009 remain positive where “Off-plan take is still high at 73%.”

With regards to new supply in the Bangkok market, the report goes on to say:

The latest inner-city Bangkok transfer figures shows:

* The gap between completed and transferred condominiums has widened after a shakeout of unqualified buyers.
* Recent high-end completions drove the average price/sqm. of transferred units to a new high.
* Sukhumvit led the want in transfers, followed by Silom/Sathron, and high-priced Central Lumpini.

Earlier this week Raimon Land reported an increase in IFA´s shareholding in the company, followed by the release of Q2 figures showing a loss of over THB200 million in 2009. This on the back of positive profit postings by many of Thailand´s publicly-listed real estate companies over the same period.

With regards to Pattaya, the report notes mixed results, with completed and resales of completed units showing some positives:

Much like tourist arrivals, condominium launches cooled in 2009 after a record H2/08, while the take-up rate sank to 35.2%, a low not seen in four years. With the gap between supply and demand widening, the average unit price began slipping from its H1/08 peak to below the THB100,000/sqm mark in 2009.

It is fair to say we see more glossy sales brochures and property billboards than actual cranes in Pattaya, and the lack of finished supply continues to guarantee strong annual returns in the range of 5-7%. While resale prices in finished properties are escalating to be more in line with current off-plan prices.

This trend is set to continue, with only a third of the total launches expected to be completed in the next two years, while the remaining units are scheduled to come be transferred to buyers in 2012 and 2013 onward, though it is unlikely that all developers will meet their targeted completion dates.

This is the 8th edition of the Condominium Focus Thailand, published by Raimon Land. Download the full report here.

SOURCE: Property-Report.com

Talal Jassim Al-Bahar, Vice Chairman and CEO of IFA HR, stated: “The increase in our shareholding in Raimon Land is a testament to our belief in the management, the company and the great value that Raimon Land adds to our portfolio. We will continue to support the company and benefit from its growth”.

Widely recognised as a premier international mixed-use developer, IFA HR initially entered Thailand during January 2007 as part of its global expansion plans.

Werner Burger, President and COO of IFA HR, said: “We have been working closely with Raimon Land for the past two and a half years and have witnessed many positive synergies between the two companies. Raimon Land is the leader in premier real estate development in Thailand. Their residential projects are on track and currently being completed with successful hand over to customers.”

While the global economic downturn continues in most markets across the world, recent reports indicate positive movement across many countries in Asia. The past three to four months will show double digit GDP growth in most of Asia for the second quarter of 2009, with Thailand growing by approximately 12% for the same period. GDP in most of Asia is currently rising nearly as fast as it fell during Q4 2008 (Source: DBS Bank Ltd, Asia: Recovery Dashboard, July 13, 2009).

Raimon Land is a multi-award winning premier developer listed on the Stock Exchange of Thailand and has established a sound track record of successful property developments in Bangkok and the main resort locations of Phuket and Pattaya. Over the past several years, the company has delivered projects valued at over US$ 200 million in luxury residential products to the Thai market. Additionally, the company has a project pipeline with a sales value exceeding US$1 billion.

Hubert Viriot, Raimon Land CEO, said: “We have seen great value created by working closely with IFA Hotels & Resorts; the internationally recognised Raimon Land name will be further elevated through IFA Hotels & Resorts international network spanning the Middle East, Europe, Africa and North America. Fortunately, the Asian market is showing signs of healthy recovery in comparison to other regions. We strongly believe we will maintain strong sales levels and will continue to deliver quality products and residences to our valued customers.”

This transaction further enhances synergies between both companies. Through closer working relationships, both Raimon Land and IFA HR will be better able to utilise their existing international portfolio and network, giving their clients access to a more diverse product portfolio including residences, resorts, private residence clubs and lifestyle experiences around the world. IFA HR recently expanded its Yacht Ownership Club by adding a home port in Phuket, a value addition to Raimon Land´s customers.

Raimon Land recently handed over The Heights Phuket project to its customers. The company´s Northpoint Pattaya residential development is on track and scheduled for completion towards the end of this year, followed by handing over to owners shortly after. Construction of The River, a major condominium project in Bangkok, continues to make good progress, with the landmark project rising steadily on the banks of the Chao Phraya River and is scheduled for completion by 2011.

Al-Bahar concluded: “Our strategy has always been to focus on emerging markets; Asia is a key region for us with excellent growth potential which we plan to capitalise on.”

by News Desk