Two of Thailand’s top property developers have signed a Memorandum of Understanding (MOU) that will potentially see Pace Development sell its entire Nimit Langsuan project together with 53 luxury residential units at the Ritz-Carlton Residences.
The Nimit Langsuan development is currently under construction and the potential sale between the two property developers will, according to a statement to the Stock Exchange of Thailand, include: “… all relevant agreements entered into with the contractors, agreements entered into with the customers, and relevant licenses.”
The statement adds that for the purchase of the “remaining” residential units in the Ritz-Carlton Residences, Pace will sell the units under the MahaNakhon project, currently Thailand’s tallest tower (pictured above during the construction phase), which are completely constructed and already in service.”
Pace said the objective of the disposal of these assets was for the repayment of debts it used as project finance, which is in accordance with its capital restructuring plan.
Although the cost of the sale has not been revealed, Sansiri is thought to have paid a 5% refundable deposit for exclusive rights to conduct its due diligence.
That process is expected to take up to 60 days from the execution date of the MOU.
Current market prices would suggest this combined deal will likely cost Sansiri several billion baht at least.
As reported earlier this week by ThailandProperty.News, the prices of prime residential property in Bangkok are still increasing but at slower rates seen just six months ago.
During the three-month period ending September 2017, prices at the top end of the market rose by 2.3% quarter-on-quarter – down from 2.7% for the previous six-month period.
More market watchers are suggesting that prices in the Bangkok luxury property market may be peaking, although the majority still seem to predict further rises in the coming year.