Has King Power paid too much?

MahaNakhon
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Duty Free retailer King Power has splashed US$ 450 million (THB 14 billion) million to purchase parts of Pace Development’s ManaNakhorn, (pictured) Thailand’s tallest tower.

Property developer Sansiri, as long ago as October 2017, signed a Memorandum or understanding and exclusivity to undertake due diligence to buy 53 under-construction units at the prime central Bangkok tower, and well as the entire Nimit Langsuan Pace Development project.

It subsequently declined to proceed with the deal, intimating the asking price was too high.

It is not known how many units form part of this new deal, although the retail space and observation desk are reported to be included, as well as a 154-unit luxury hotel, understood to be the Ritz-Carlton.

Pace Development Chief Executive Sorapoj Techakraisri was reported as saying the firm would use the proceeds to purchase shares in the project from investors Goldman Sachs Investment Holdings (Asia), an arm of Goldman Sachs, and Apollo Asia Sprint, a unit of Apollo Global Management LLC, for US$ 320 million and repay loans.

He also said that the proceeds would be used to develop its four other real estate projects and expand high-end café brand Dean & Deluca in the United States, Japan and Thailand.

Pace owns the franchise rights to the global café brand.

In recent months, in what was believed to be an effort t cut costs, It suspended the publishing operations that saw the company publish licensed Thai language editions of American magazines Bulletin Board and Hollywood Reporter.

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