Ital-Thai and contractors’ association develop Oriental Residence
Thai Contractors Asset, a joint venture between the Ital-Thai Group and the Thai Contractors Association, has introduced its first condominium and serviced apartment project on Wireless Road.
Called The Oriental Residence, it is worth Bt3.8 billion and is designed to serve the luxury demands of the market.
Half the investment budget will be borrowed from a bank, under a contract project loan worth Bt800 million with Thanachart Bank, with a minimum interest rate of between 0.5 per cent and 1 per cent.
The balance will come from the company’s capital.
The project will combine 44 condominium units, offering 30-year leases, and 145 serviced apartments on 2 rai of land close to the US and Netherlands embassies.
Thai Contractors Association president Polpat Karnasuta said the project had been taken up by the association’s head office, following the expiration of a lease with the Crown Property Bureau (CPB) in 2006.
“We had a long lease contract with the CPB for more than 40 years, but now this location is being developed as a central business district and our lease price had to increase. As a result we decided to offer a new deal to the CPB by developing this location for residences that will generate a return to cover this rising lease price,” he said.
To support this new objective of a residential project, the association decided to establish a new company with registered capital of Bt500 million.
Ital-Thai Group is the majority shareholder with a 81.4-per-cent stake in Thai Contractors Asset. The remaining 18.6 per cent is held by other association members.
Forty per cent of the 81.4 per cent held by Ital-Thai Group is owned by Saksinprasit, which is in turn owned by Italian-Thai Development director Nijaporn Charanachitta; 20 per cent is held by Amari; 15 per cent by Italian-Thai Development; and the remaining 6.4 per cent by 3B Holding, owned by Italian-Thai Development managing director Premchai Karnasuta.
“We cannot reveal the price for this project sale now because we have to investigate the market and our sale agent’s suggestions.
“But we believe the project will offer prices to meet luxury market demand,” said Valaithip Charanachitta, managing director of Thai Contractors Asset.
At present, rental prices for luxury serviced apartments around Wireless Road are between Bt1,200 and Bt1,300 per square metre.
The company has signed a 33-year lease with CPB worth Bt220 million from 2007. As a result the company will offer 30-year leases to its customers - an expected 40 per cent from domestic investors and the remaining 60 per cent from foreigners.
Valaithip said the project was applying for an environmental impact assessment and a construction licence under Article 39 (2) of the Building Act.
If the Bangkok Metropolitan Administration approves the licence, the company is ready to begin construction in the first quarter.
However, the company will start presales in this month with CB Richard Ellis (Thailand) its sale agent, and expects a return on investment of between 13 and 15 per cent a year.
The project is expected to be completed by 2011
The Nation January 21, 2009
