$220 million Halong Bay (Vietnam)

The $220 million Halong Star, the first project for Limitless in South East Asia broke ground at Halong Bay near Hanoi, Vietnam.

The event was marked by a soil turning ceremony at the project's 125 hectare site, attended by dignitaries from the UAE and Vietnam, including Nguyen Quang Khai, Vietnam Ambassador to UAE and political leaders of the country's Quang Ninh province.

Halong Star, announced in September this year, is a joint venture between Limitless, Phuong Hung Joint Stock Company and International Property Investment Partners LLC. The project will include the area's first five-star hotel, conference facilities, high-end residential units and recreational, cultural and education amenities, all with extensive views of Halong Bay - a UNESCO-sanctioned world heritage site.

Speaking in Halong Bay, Saeed Ahmed Saeed, CEO of Limitless, said: "Halong Star is our first international project to break ground. The event marks the beginning of a development that will fulfil Halong Bay's massive demand for high-end tourist and residential facilities, especially those with views. I am honoured that Limitless is to play such a major role in enhancing this beautiful part of the world."

The start of the work on Halong Star comes just two days after Limitless marked the official launch of its regional operations for SE Asia, based out of Singapore.

Saeed Ahmed Saeed said: "Limitless was established with the aim of capitalising on Dubai's real estate experience by developing distinctive projects around the world. SE Asia is a strong market for us: Halong Star is one of many Limitless projects in the pipeline for the region."

Limitless will engage well-known architects to draw on traditional Vietnamese, French Colonial and modern Asian design characteristics for the hotel and residential elements of Halong Star. In addition, grounds will be landscaped, featuring lakes and tropical gardens to preserve and enhance the natural beauty of Halong Bay.

The project is expected to be completed over five years.

TCC to invest B9bn new projects

TCC plans to spend B9bn to expand hotel business

TCC Land, owned by liquor billionaire Charoen Sirivadhanabhakdi, plans to spend nine billion baht this year to expand its hotel development business and acquire some buildings.

Soammaphat Traisorat, the company’s executive director, said seven billion baht would be invested to develop three new luxury hotels and four low-budget hotels under its own Imm brand.

Among the three five-star hotels, two are in Samui and one in Sukhumvit Soi 24 in Bangkok.

The four low-budget hotels will be located in Chiang Mai, Hua Hin, Samui and Sukhumvit Soi 50.

‘‘Demand for budget hotels is strong and we will go with our Imm brand to some major provinces,’’ he said.

The son-in-law of Mr Charoen explained that an Imm hotel would have about 120 rooms and room rates around 700-800 baht per night.

TCC Land has developed a number of luxury hotels including Le Meridien Chiang Mai, Le Meridien Surawong (Bangkok), Banyan Tree Samui and Luxury Collection on Koh Samui.

Apart from the hotel business, TCC Land will spend approximately two billion baht to acquire some buildings. Of the total budget, the first one billion baht will be used to buy Nation Tower in Bang Na while details for another one billion baht have not been disclosed yet. The ownership transfer of Nation Tower is due within this year.

Mr Soammaphat added that TCC Land was also working on a 12,000-rai site in Cha-am, where it would develop a golf course and residential complex. TCC Land will act as the site’s master planner and develop key infrastructure for the project. After that, it would allow foreign developers to lease some of the land and develop their own projects.

In terms of overall strategy, TCC Capital Land, the joint venture between TCC Land and CapitaLand of Singapore, is being very cautious about making new investments everywhere in the world including Thailand.

Chen Liang Pang, the CEO of TCC Capital Land, said the parent firm was concerned about the global economy, which has been slowing down, due mainly to the US sub-prime crisis and rising oil prices.

‘‘2008 is not a good year for investment. Next year will be better and more stable,’’ he said.

But the Thai property market is picking up and will be more bullish than last year due to the better sentiment and tax incentives.

TCC Capital Land, however, would develop only four projects this year, fewer than in a good economic situation when it developed six to eight projects a year. Last year it planned to launch five new projects but launched only two.

After launching North Park Place worth 1.2 billion baht two weeks ago, it plans to launch a luxury condominium with 200 units worth three billion baht in a prime location by the end of the year.

Subsidiary S&S Residential Limited, set up last year, will launch a new project worth 1.8 billion baht by the end of the year. On March 14 it will open sales of S&S Sukhumvit 101/1 with 810 units worth 1.8 billion baht and hopes to close sales by the end of the year.

The subsidiary will focus on the middle-priced segment. Prices will be less than 50,000 baht per square metre for condominiums which will be located within 1.5 kilometres of a mass-transit station.

In the next two years, S&S will develop single houses and townhouses with prices of about one to three million baht a unit, he says.

Currently, most of TCC’s projects have been more than 90% sold. Only Empire Place was 75% sold. It aims to achieve seven billion baht in revenue by the end of 2008 from transfers of units at Athe´ne´e Residences and Empire Place. Last year it posted three billion baht in revenue realisation.

KRISSANA PARNSOONTHORN KANANA KATHARANGSIPORN

Thailand’s biggest landlords.

Chang beer family builds huge property portfolio

From Bangkok to Siem Riep, from London to New York, you may book into one of the posh hotel properties of Thailand’s liquor tycoon Charoen Sirivadhanabhakdi.

Currently, his family’s multibillionUS - dollar property portfolio covers 24 hotels, including nine in major foreign cities, as well as 13 shopping centres, three office buildings and three golf courses.

The entire portfolio is under the management of Wallapa Traisorat, Charoen’s eldest daughter, who took over the family’s property and hotel and related businesses in 2001.

Known as one of the country’s biggest landlords, Charoen and his wife, Wanna, own thousands of plots of land in Thailand, thanks to their highly lucrative liquor business, based on Chang beer.

The family started buying property decades ago, and it took Wallapa three years from 2001 to categorise most of her parents’ vast array for a proper database, so that she could manage the portfolio professionally.

“My parents like to buy land and other properties, so they’ve often lost count of how many plots are already purchased,” said Cambridge-educated Wallapa, who is in her 30s with two brothers amd sisters. “Sometimes, we found that brokers had offered to sell our own land plots to us.”

Besides liquor, beer and non-alcoholic beverages, all of which generate the most revenue, the family has turned to hotels and other properties as another cash cow, planning to invest Bt100 billion over the next decade in various projects worth an estimated Bt200 billion.

The family is also turning vast plots of its agricultural land in Thailand into plantations for raw materials to produce ethanol for the alternative-fuel sector, which is booming due to skyrocketing oil prices.

For the Sirivadhanabhakdi family, good immovable assets appear to have more long-term allure than do stocks, bonds or other financial assets.

Luxury property market in Pattaya.

Eastern Seaboard dynamism drives Pattaya property.

Dynamic economic growth along Thailand’s Eastern Seaboard is fuelling the luxury property market in Pattaya and driving its development as a high-end lifestyle destination.

As the city’s economic fortunes rise, so too does the demand for top quality accommodation and facilities, and this has attracted the attention of property investors seeking solid long-term returns as well as many of Thailand’s property development leaders.

The world-class construction conglomerate Bouygues recently opened an office in Pattaya, the company’s first move outside of Bangkok, demonstrating its confidence in the Eastern Seaboard and its future potential for further growth.

The Chon Buri and Rayong areas have a gross domestic product that is climbing faster than in any other region in Thailand. According to the National Economic and Social Development Board, in 2006 the eastern region was the second wealthiest after Bangkok and its vicinity, with a 12% annual growth rate from 2005.

Rayong led the Eastern Seaboard’s annual Gross Provincial Product with 527,366 million baht (an increase of 18% year-on-year), followed by Chon Buri with 407,364 million baht (an increase of 9% year-on-year).

This has given rise to a substantial middle class and established a platform for strong long-term gains, creating a fertile ground for property investors looking to secure lucrative long-term rental agreements for their Pattaya portfolios.

Rental demand in Pattaya is being driven by people with business interests in the area or those who work for international companies that are establishing bases on the Eastern Seaboard.

These companies all have management who need somewhere to live, and this not only generates potential renters but also a large pool of potential buyers with a number of options. They can live in Pattaya for the lifestyle, sell their investment at a higher price or achieve solid rental rates for it.

Rental yields have been averaging 6-10% per year with monthly rates between 500 baht and 650 baht per square metre (psm), while investments are returning sustainable capital gains. Northshore, the first project in Pattaya or our company, Raimon Land, has seen values soar by 70-80%, and it has set a benchmark for the Pattaya market, which no one thought could be achieved. It also demonstrates where Pattaya is headed and where I believe it will continue to go.

The speed of capital appreciation has been staggering, especially when talk of achieving 75,000 baht per square metre was considered unrealistic in 2005. In 2007, Northshore achieved a high of 132,500 baht, although a resale occurred in January 2008 for a seafront unit that reached 180,000 baht psm.

The reason for the skyrocketing rates is largely due to a very limited supply of existing high-quality condominiums. Prices are set to continue to rise and no more than 1,000 to 1,200 units that have currently broken ground will be completed over the next three years.

The emergence of the Eastern Seaboard as Thailand’s most economically energetic region has also brought a more demanding landscape for developers in which investors need to be wowed by high-quality standards in construction, design and finishes.

Pattaya is among the first region’s outside of Bangkok that is seeing new high levels of construction, as evidenced by Bouygues local subsidiary BouyguesThai’s new operation. The company is overseeing the building of Raimon Land’s 374-unit Northpoint in north Pattaya.

From a design point of view, much of what is available is form over function stressing aesthetics rather than effective, practical design. However, high-end investors are looking for functionality in a modern design and many developers are responding accordingly.

Along with the rise in the quality of residential construction, the area’s economic boom is lifting standards across the board in Pattaya as it develops into a destination that can cater to affluent, well-travelled visitors.

All indicators point to continued sustainable economic growth on Thailand’s Eastern Seaboard, and the region’s ongoing rise in prominence will be met by continued demand for highquality residential properties, presenting an excellent opportunity for savvy investors seeking strong rental yields and impressive capital gains.

Home and Condo Show (Bangkok)

Raimon Land will have a significant presence at the upcoming 18th Home and Condo Show, demonstrating its ongoing confidence that this year represents a strong opportunity for Thai and overseas buyers to make luxury property investments. Organised by the Thai Condominium Association, the event will showcase a wide variety of houses, condominiums and properties. The annual event will be held at the Queen Sirikit National Convention Centre March 13-16, 2008, from 1000 – 2200. Raimon Land’s booth occupies spaces C17-C20 in Zone CG.