$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.

LH to invest B4.6bn

The country's largest developer Land & Houses Plc (LH) is more confident in the country's economic and political situation and plans to increase investment this year to 4.6 billion baht, according to senior executive vice-president Adisorn Thananan-narapool.

He said the new investment reflected the company's view that the political situation was clearer and that consumer confidence was improving.

The company expected a recovery in residential demand from now onwards and would spend four billion baht to acquire new land for housing development in 2009-10, up from three billion in 2007.

''We should buy more plots of land,'' he said. ''The property market is accelerating and the new government announced megaproject plans that will open new areas for commercial and residential development.''

The company also said that land prices had stabilised because fewer housing developments were launched last year and lenders had become more strict in approving finance for developers and mortgages for buyers.

The main source of investment in the new land will be working capital. However, LH might issue warrants due to falling interest rates. Last year it issued two billion baht in warrants from a total of five billion baht approved by the board.

With an attempt to cap construction costs that rose 8%, the company stocked thousands of tons of steel, sanitaryware, tiles and cement sufficient for six months of development this year. It would increase unit prices by 2-3% within the year, he said.

LH plans to launch 14 housing projects worth 12 billion baht in 2008. They would be two pre-built condominiums, five townhouse projects and seven single-housing estates.

The company expects to earn 21 billion baht by the end of the year, up 13% from 2007. Major revenue would be from single-housing sales, accounting for 85% while net profit would also increase from 16.9% of total revenue.

Mr Adisorn said the company expected its gross profit margin to pick up slightly this year from 30.5% in 2007 to 31%.

''Margins this year will improve as our spending for marketing and advertising campaigns will decrease,'' he said.LH would also spend 500-600 million baht to raise funds for L&H Property Ltd, a joint venture with the Singaporean Government. LH would hold 60% while the Singapore Investment Corporation (GIC Real Estate Pte) would hold 40%.

The subsidiary needed an investment of five billion baht within three years to develop a project on a 10-rai site at the Asok-Sukhumvit junction, which would comprise of 500-600 serviced apartment units and retail space of about 30,000 square metres.

L&H Property has two projects in hand including L&H Villa Sathorn Bangkok, single houses for rent at rates between 100,000 and 200,000 baht a month, and Grand Centre Point Hotel & Residence Ratchadamri with 500 rooms at 8,000 baht a night.

LH shares closed yesterday on the SET at 8.50 baht, down 0.15 baht, in trade worth 221.2 million baht.

KANANA KATHARANGSIPORN

Buying Luxury Condominiums (Bangkok)

Bangkok's luxury condo minium market will become more active this year and the new supply will continue to be limited, according to leading international property consultants CB Richard Ellis.

Bangkok, Thailand (PRWEB) February 27, 2008 -- Bangkok's luxury condominium market will become more active this year and the new supply will continue to be limited, according to leading international property consultants CB Richard Ellis.

The high-end and luxury markets, which faced a slight slowdown in 2007 mainly due to the low market sentiment, will become more active in 2008. Last year, the main focus in the Bangkok condominium market was in the mid-range market where projects are located close to the skytrain or other mass transit system. This segment will continue to grow and become more competitive.

Investors are aware that freehold land plots in prime central locations are very limited and the increase in land prices has resulted in a drop in the new supply of luxury units in these areas, whereas demand for downtown city living is growing. Prices of downtown condominiums have continued to rise since the market recovery in 2003, at an average of 10-12% per annum for new projects.

According to Ms. Aliwassa Pathnadabutr, Managing Director of CB Richard Ellis, "We have found that, with the rising construction and land costs in downtown areas, it will be difficult to develop new freehold high-rise condominiums to sell at prices below Baht 100,000 per square metre in prime locations such as upper Silom, Sathorn (a radius of 1 km from Lumpini Park towards Silom and Sathorn Road), inner Wireless Road, Sarasin Road, Rajdamri Road, Langsuan, and Ploenchit Roads, as well as Sukhumvit Road up to Thonglor in good neighbourhoods near skytrain stations. Lumpini Park is seen as the centre of the prime Central Business District (CBD) of Bangkok, an area covering a radius of 1 km from the park and is one of the most sought-after locations where good freehold land is scarce.
Prices of newly launched high-end and luxury condominiums in these areas range from Baht 100,000 to Baht 178,000 per square metre, depending on product and location. Most of these newly launched projects have sold over 60% of their units in 2007 and include such developments as Hansar Rajdamri. The prices of units at the Athenee Residence, a newly completed condominium project on Wireless Road, have appreciated by over 40% in the 3 years since the project's launch in 2004.

In December 2007, the Sukhothai Residences, developed by HKR International, set a new price record for the Bangkok condominium market by achieving Baht 220,000 per square metre for its typical units and Baht 343,000 baht per square metre for one of its penthouses. The project's success in selling over 90 units or 50% of the total saleable area at these record prices in one month indicates that demand for luxury properties is still strong from both Thai and overseas buyers.

CB Richard Ellis Research team has re-categorized the condominium market in the downtown area into 6 different segments by price, including the super luxury segment with prices of over Baht 180,000 per square metre, the luxury segment priced at Baht 130,000 - 180,000 per square metre, the high-end segment priced at Baht 100,000 - 130,000 per square metre, the upper middle segment priced at between Baht 80,000 - 100,000 per square metre, the mid-range segment priced at between Baht 60,000- 80,000 per square metre, and the economy segment priced at below Baht 60,000 per square metre.

The market for the luxury supply has become much more sophisticated in terms of target buyers' requirements. Developers will therefore face more challenges and more intense competition than in the mid-range market. The critical factors in developing in luxury and super luxury condominiums lie in selecting the right location, design, unit mixes and product that must be acceptable to the target purchasers.

"Investment in new luxury condominiums in prime CBD locations has generated an average of 4- 5% yield per annum during the past 4 years and 10-12% price appreciation per annum which is pretty good compared with other forms of investment. Another underlying benefit in investing in residential properties is its potential for future use," said Ms. Aliwassa.

CB Richard Ellis found that demand from foreign purchasers has been increasing during the past 3 years. The average percentage of foreign buyers of downtown condominiums as of Q4 2007 stood at 32% whereas the percentage of foreign buyers was less than 20% on average in the last decade.

The quota for foreign ownership in some condominiums has reached its 49% limit. That means foreigners are no longer able to purchase units in those buildings unless they buy a unit from a foreign owner. This makes units owned by foreigners more valuable in those buildings popular among foreigners. CB Richard Ellis is now seeing the beginning of two-tier pricing for Thai and foreigners in those projects which foreign quota is reached.

Foreign investors have started to note this trend and are looking to invest more in good quality and well-designed buildings that are located in prime CBD locations despite the skyrocketing prices.

Another reason that boosts condominium prices in downtown Bangkok among foreign investors and end-users is their affordable price levels. For example, with a budget of US$ 500,000 or around Baht 15 million, you could purchase a luxury two-bedroom unit with 90-120 square metres in a prime CBD location in Bangkok.

To buy a similar product in a prime central location in other cities like Singapore or Hong Kong, you would have to allow for a budget in the region of Baht 50 - 80 million.

This comparison shows that Bangkok has a wider market base as there are a large number of individual investors in the region with this budget who are interested in real estate investment.

Despite the world property market facing difficult times, Bangkok condominiums, in both downtown areas and along the skytrain routes, are still in demand.

"We do not see price increases at the same rate for non-prime locations in Bangkok as there is plenty of land available for development. The upper-middle, mid range and economy markets will be more competitive in terms of pricing, whereas the key success factor in the luxury market is product quality, design and unit mixes which must match requirements of the target market. Market sentiment is another key factor in driving the high-end and luxury markets," concluded Ms. Aliwassa.

MJD sales up 37.3%

The luxury condominium developer Major Development Plc (MJD) reported 37.3% growth in revenue to 2.198 billion baht last year, with net profit rising 7.4% to 279.72 million baht.

CEO Suriyon Poolvoralaks said the performance was satisfactory despite the sluggish property market, rising construction costs and political uncertainty last year. Net profit per share was 0.54 baht and the company will pay a dividend at 0.25 baht per share on April 29.

This year it plans three new projects worth almost 10 billion baht. The first is a super-luxury condominium worth more than three billion baht in Sukhumvit 31, in a joint development with AIG Global Real Estate Investment.

The second is a 3.3-billion-baht highrise on Jomtien beach of Pattaya and the third is a low-rise project worth three billion baht in Hua Hin.

MJD shares closed yesterday on the SET at 3.88 baht, up 12 satang, in trade worth 53 million baht.

New luxury resort in Phuket

Outrigger Enterprises Group announced today that it has been selected to manage a new luxury 400-room full service hotel in an exciting new, mixed use resort being built on the island of Phuket in Thailand. The resort, located on Mai Khao Beach along the unspoiled northwest coast of Phuket, will be called the West Sands Resort, Phuket and will feature the new West Sands Outrigger Resort, Phuket hotel, 98 villas and 336 condominiums, along with stand-alone restaurants and a world class water park. City Developments Limited, whose principals include Sir Terry Leahy, a former European Business Leader of the year, and Paul Mercer, well-known developer and president of Central City Developments, is the developer of West Sands, which is the first in a series of lifestyle resorts to be developed by Central & City Developments."This is an exciting opportunity for Outrigger," said David Carey, president and CEO of Outrigger Enterprises Group. "We've had our sights set on Thailand -- Phuket in particular -- for some time now; and we're thrilled to be associated with such a prestigious project and a team of experienced developers known for their high standards and quality projects."

"West Sands offers a superb environment, unmatched anywhere else on Phuket in terms of both property and environment," said Sir Terry Leahy, principal shareholder of Central & City Developments. "We're pleased to have Outrigger as the manager of the hotel at West Sands and look forward to a successful project backed by Outrigger's exemplary reputation and expertise, global strategy, cutting edge technology and proven customer service."

Work is already underway on the West Sands project, with the first 140 villa and condominium units set for completion by the fall of 2008. The West Sands Outrigger Resort hotel facility is part of phase two of the project and is slated to open by end of 2009. Resort amenities will include Phuket's first water park, a beach club, private clubhouse, fitness center, tennis courts, a holistic fusion spa, as well as a selection of retail shops and restaurants.

Condominium units will be located in five-story buildings set amidst their own free-form swimming pools. The one-, two- and three-bedroom apartments will feature large balconies, high ceilings, fully equipped kitchens and luxurious bathrooms. Ground floor units will have their own gardens with private access.

The most luxurious of accommodations will be the Beach, Sea View and Lake View Villas -- large apartment units offering spacious living and dining areas, each with its own Jacuzzi, swimming pool and maid's quarters.

According to Sir Terry, a unique aspect of West Sands is its commitment to being environmentally friendly. "What makes West Sands so remarkable is its emphasis on harmonious living. Luxurious, yes, with exclusive leisure facilities throughout; but the development also has been made as environmentally friendly as possible. Solar energy, superior insulation, biodegradable refuse plants, hydrothermic air-conditioning and hot water systems - all have been carefully planned for the least ecological impact while at the same time maximizing a quality experience."

Although not yet complete, West Sands has already begun garnering recognition for its commitment to being environmentally friendly. On December 1, 2007, West Sands was recognized with the Lighthouse Club Green Development Award at the prestigious 2007 Thailand Property Awards ceremony in Bangkok, Thailand. For additional information on this award, log on to www.thailandpropertyawards.com

Phuket is one of Asia's most popular beach destinations, offering an unbeatable combination of soft, white sand beaches and superb hospitality. It is consistently voted among the world's favorite island destinations in the prestigious Travel + Leisure magazine's annual survey, ranking number eight in 2007. Set in the Andaman Sea off the southwestern coast of Thailand, Phuket is connected to the mainland by a causeway allowing easy road access. The island is serviced by the Phuket International Airport, which is the second busiest passenger airport in Thailand, behind only Bangkok's Suvarnabhumi Airport. Since the early 1980s, tourism has been Phuket's main economic driver. Whether it is world class diving in the Andaman Sea, golf at world-standard championship courses or exciting eco-adventures in tropical forests, Phuket is a favorite visitor destination.

"West Sands is Outrigger's first venture into Thailand, but it certainly won't be our only venture," said Mr. Carey. "We're looking forward to gaining a significant presence within Asia over the next few years. With two projects presently underway in Bali, we are currently looking at other potential projects in Thailand, Vietnam and Hainan Island, China. Outrigger brings a strong reputation and more than 60 years of experience in hospitality management and development to the table, and we look forward to establishing Outrigger's presence in other areas of the Asia-Pacific region.

TCC Capital Land - Sukhumvit Bangkok

Luxury developer joins budget-condo fray TCC Capital Land, part of the TCC Group of liquor tycoon Charoen Sirivadhanabhakdi, has joined the developers wooing middle-class buyers with the launch of S&S Sukhumvit on Sukhumvit 101/1.

The 1.8-billion-baht project will be developed by S&S Residential Ltd under the eco-living concept featuring over 4,000 square metres of natural greenery and recreational spaces.

The site’s 22- and 18-storey buildings will house 810 units with sizes between 29 and 69 sq m and prices starting from 1.28 million baht.

Chen Lian Pang, S&S Residential’s CEO, said the company’s surveys on consumer needs and behaviour showed that key factors in decisions to buy properties had changed dramatically.

Purchasers today consider privacy, transport convenience, distinctive designs and functionality to answer all needs. Therefore, S&S Residential, short for Sustainability and Sufficiency, was created to develop projects under the eco-living concept.

S&S Sukhumvit focuses on mid-range quality condominium units with creative design for the mass market. It features environmentally friendly functions to help conserve electricity and water, as well as promote recycling.