Fishman builds first Thailand project

ndustrial Buildings Corp., a subsidiary of Fishman Holdings, is investing NIS 100 million to build a luxury real estate project in Bangkok, marking its first entry into Thailand.

The company has signed a memorandum of understanding with three Thai companies to invest NIS 100m. for the acquisition of 50 percent of the real estate project.

The 123,000-square-meter, mixed-use project, including a luxury residential skyscraper, a hotel and a commercial high rise, will be built on a 12,300-sq.m. lot.

BTS chief returns witH big real-estate venture

Keeree Kanjanapas, who owns property company Tanayong and the Bangkok Mass Transit System (BTS), has come back to expand his business by focusing on the hospitality industry and the BTS SkyTrain. He had faced a debt burden of up to Bt77 billion arising from the financial crisis of 1997.

In the the hospitality industry, Tanayong will work as Keeree's business arm. He plans to invest about Bt23 billion to build 16 hotel and resorts across Thailand and overseas territories, starting this year until 2013.

Tanayong will set up a joint venture with Minor Group's management - Jonathan Wigley, John Westoby, Thitiya Westoby and Nopparat P'Kulsiri - who call themselves Absolute Hotel Services and have a registered capital of Bt25 million. The company will provide property-management and other consultancy services to other companies in the hospitality and property industries.

Property Lease in Thailand

Leasehold is a frequent choice of property developers and foreign buyers. It means renting property and is regarded as an alternative to freehold ownership. Land can be leased on short or long term contracts up to thirty years. Leases for industrial or commercial purposes can be registered for a term of up to fifty years. Property leases are governed by the Thai Civil and Commercial Code (CCC) in Sect. 537-571. Whereas, with a few limited exceptions, land ownership is prohibited to foreigners, land lease is not. In a typical situation, the land owner and the foreign lessee would normally prefer entering into a sale and purchase agreement but chose leasehold to comply with Thai property law. In such cases, the land owner offers a lease agreement which is clearly biased for the benefit of the lessee and gives the lessee as many rights and options as possible in an effort to make it resemble a freehold ownership. Obviously, this effort can only be successful to a certain extent.

Acacia buys 50pc stake in Thai hotels

Bahrain-based Acacia Real Estate has acquired a 50 per cent stake in three internationally branded five-star hotels in Thailand.

The company has bought the shares through a joint venture with Meridia Capital, a Spain-based private equity group, and Capital Hospitality Group, a specialised hotel investment firm.

The deal is projected to generate a rate of return for investors in excess of 20pc per annum over a five-year holding period.

TAIB Bank has been appointed as the exclusive placement agent for the project.