Hilton Pattaya receives HA+D Awards for Design Excellence

The distinctive lobby of the Hilton Pattaya hotel.

The Hilton Pattaya hotel was recently declared the winner of the “2011 HA+D Award for Design Excellence” from Hospitality Architecture & Design. One of the most comprehensive reader’s choice awards dedicated to the hospitality industry, the accolade celebrates excellence in project design and product innovation across categories including hotel architecture and hotel interior design.

“Having only opened a relatively short time ago, we are truly delighted and honored to be recognized by industry opinion leaders and peers,” said Harald Feurstein, general manager, Hilton Pattaya. “This prestigious and highly coveted award bears testament to Hilton Pattaya’s positioning as a distinctively luxurious and well-designed hotel that will excel in Asia’s highly competitive hospitality market.”

Hilton Pattaya’s striking lobbies (one on the ground floor and one on the 16th floor), the Lobby Bar (Drift), the all-day dining restaurant (Edge) and the specialty restaurant (Flare), were all designed by the award-winning Thai-based architectural and interior design firm, Department of Architecture Co Ltd.

A panel of industry experts made an initial selection of winners with a further round of reader’s voting then conducted online. The HA+D Award is organized by Hospitality Architecture & Design, a sister publication of Hotel Management Asia (Hong Kong). Published by Questex Media in association with Trefoil Media, Hospitality Architecture & Design is a bi-monthly print publication and digital publication in the form of a website, and weekly e-newsletter.

Hilton Worldwide currently operates six properties in Thailand including Hilton Pattaya, Millennium Hilton Bangkok, Hilton Hua Hin Resort & Spa, Hilton Phuket Arcadia Resort & Spa, Conrad Bangkok and Conrad Koh Samui.

SEC head advocates private real estate/ infrastructure investment

(Left-right): Anne Schlagel, Country Director, OBG; Vorapol Socatiyanurak, Secretary-General, SEC; and Alex Gordy, Editorial Manager, OBG.

Vorapol Socatiyanurak, the Secretary-General of Thailand’s Securities and Exchange Commission (SEC), said in a recent interview with the global publishing, research and consultancy firm Oxford Business Group (OBG), that the SEC has opted for a proactive approach when it comes to taking advantage of the current influx of capital into Thailand and recognizes the importance of making funds available for projects, especially infrastructure development, as they offer a key means of boosting private sector participation in Thailand’s economic expansion.

“Infrastructure funds allow the private sector to replace spending by the government which can reserve its public funding for priorities such as education system, social welfare, and public healthcare,” he said. “Thailand needs US$3bn-4bn a year to develop infrastructure because of its location as an economic bridge for the region.”

Socatiyanurak also highlighted the commission’s decision to pave the way for the introduction of real estate investment trusts (REITs) as an alternative financial instrument for developers seeking project funding. He said Thailand’s healthy real estate sector could make REITs an attractive option for developers by providing them with more flexibility. “Unlike property funds, REITs allow more flexible investment and leverage,” he said. “The rules should be finalised during 2012.”

The interview with Socatiyanurak was conducted as part of a nine month investigative research program for the OBG’s forthcoming guide on the country’s economic activity and investment opportunities.

Rush for Bangkok Land’s pop shops

Potential investors queue up to buy the 214 shops put on sale by Bangkok Land in Muang Thong Thani.

Many buyers slept overnight on the roadside to ensure they could buy one of the 214 shops offered for sale by Bangkok Land at Muang Thong Thani on March 31.

Sold off at a 50% discount ranging from Bt 199,000 to Bt 799,000, income from the sales was in excess of Bt 100 million. Shops ranged in size from 33.5sq meters to 62.5 Sq meters.

Managing Director of Bangkok Land, Peter Kanjanapas said, “Interest in commercial properties at Muang Thong Thani is at an all time high since IMPACT is drawing 15 million visitors every year and with the recent addition of the 380 room Novotel Bangkok Impact, the demand for retail and leisure has peaked.”

“The Pop Shops, located on the ground level of Popular Condos are particularly interesting especially after last year’s complete sell out of the last remaining units of the 27000 Popular Condo complexes. The company has just completed 100% transfer of the sold out units, meaning that there are more than 150,000 residents now living above the Pop Shops, giving an ever rising demand for commercial properties in that area.

“This is particularly encouraging since the successful management of the flood crisis last year, boosted confidence of local residents and potential buyers who are interested in properties in Muang Thong Thani,” added Kanjanapas.

With foresight by the Executive Chairman of Bangkok Land, Anant Kanjanapas, for some 20 years Muang Thong Thani was developed as a satellite city with advanced planning and infrastructure. 2 lakes were included in the project not only for their beauty but also for their effectiveness in coping with floods that may occur. Thong Thani remained free of flooding late last year and locals placed banners across roads thanking Khun Anant for his ongoing support.

Given the interest in the area, Bangkok Land is already developing a further two commercial type projects - Bee Hive and Popular Walk - which will begin in the next couple of months.

Summer Garden launches and appoints Knight Frank Thailand as a sole agent

Suwat Iamwongwarn, Executive Director of Winsome Co., Ltd (5th from left), poses for a photo with Phanom Kanjanathiemthao, Managing Director Frank Knight Thailand (3rd from right) and other company executives at the launch of the Summer Garden condominium in Bangkok.

Summer Garden, a new condominium on Bangkok’s Chaengwattana Road held a press conference recently to announce its launch and officially open the sales gallery.

Summer Garden, a THB 1 billion baht project by the Winsome Co. Ltd., will sit on five Rai in Chaengwattana Soi 19 opposite Central Plaza Chaengwattana. The first phase is 50% sold and will be complete in 2014.

Summer Garden aims to provide a luxurious lifestyle under a “Serene Garden Living” concept with first class facilities such as a free-form swimming pool, garden, and fitness and jogging track. The development will consist of 657 units from 29-51sqm at the starting price of 1.29 MB.

The developers have appointed real estate management company Frank Knight Chartered (Thailand) as the sole agents.

Aloft Bangkok offered for sale

Aloft Bangkok.

One of Asia’s newest and most innovative hotels, the Aloft Bangkok – Sukhumvit 11 has been put up for sale by international tender through Jones Lang LaSalle Hotels.

“The hotel, recently opened in February 2012, was built with the intent to sell upon completion, allowing a potential hotel investor to avoid a typical planning and construction period of more than three years,” said Mike Batchelor, Managing Director of Jones Lang LaSalle Hotels.

Built to international standards with 297 keys including seven suites, the hotel is currently under the management of Starwood Worldwide. Aloft is the newest member of Starwood’s portfolio and the sister brand of the upscale W Hotels. Aloft Bangkok is the first Aloft-branded hotel to open in South East Asia.

Aloft Bangkok is located along Sukhumvit Soi 11, an incomparable location in one of Bangkok’s main tourist hubs and directly across from the world-famous Bed Supper Club. The hotel emphasizes innovative use of technology to enhance guest experience and efficient design to provide best in class return to an investor. It also contains a wide range of facilities including three food and beverage outlets, fitness center and swimming pool as well as an upcoming nightclub on the 6th floor.

“It is rare for such large scale hotels to be offered to market in a transparent manner in the much sought after Sukhumvit area of Bangkok,” said Karan Khanijou, Vice President of Jones Lang LaSalle Hotels, adding, “The sale campaign of the Aloft has generated significant investor interest from Thailand and around the region.

“The last such transaction in Bangkok, the Sofitel Silom, was sold in early 2011 also by Jones Lang LaSalle Hotels. We have seen a major increase in investor interest in the Thai hotel investment market over the last three months, with several other sales either in advanced stages or expected to be announced in the coming weeks,” Mr. Khanijou continued.

Investor sentiment has improved year-on-year since 2010, mirroring the continued increase in visitor arrivals and hotel performance over the last two years. According to statistics compiled by the Tourism Authority of Thailand, 2011 saw a record 19.1 million visitor arrivals to Thailand, a 20% increase over 2010 figures, also a record year, with Bangkok alone receiving 12.3 million visitors, representing an 18% increase over 2010.

According to the Office of Tourism Development, 2012 visitor arrivals are expected to increase by a further 7.3% to 20.5 million and visitors to Bangkok should post 5-8% growth levels.

The hotel market continues to perform well with the latest data from Smith Travel Research reporting 76.2% occupancy at an average rate of THB 2,781 for Bangkok’s 4-star hotels in February.

Jones Lang LaSalle Hotels expects Thailand to continue to be one of Asia’s most attractive investment destinations due to its popularity with tourists and continually strong growth in visitor arrivals.

Jones Lang LaSalle appointed sole sales agent for Prima Wongamat II

Itthi Chavalittamrong (3rd left), CEO of Petch Pattaya Development Co., Ltd, holds up the contract of appointment of Jones Lang LaSalle as the sole sales agent for Prima Wongamat with Suphin Mechuchep (3 right), Managing Director of Jones Lang LaSalle.

Real estate and property management company Jones Lang LaSalle has been named the sole sales agent for Prima Wongamat Phase II, a prime resort condominium project in Pattaya by Petch Pattaya Development Co., Ltd. The development is claimed to offer the best value for money for buyers of beachfront condominiums in Pattaya with prices already including full furnishings.

“Prima Wongamat Phase II followed the successful launch of Prima Wongamat Phase I, a low-rise resort-style condominium project which has now enjoyed a sales rate of over 90%,” said Itthi Chavalittamrong, CEO of Petch Pattaya Development Co., Ltd.

“With a much larger development scale of Prima Wongamat Phase II, we want to ensure that the project will achieve a strong sales rate as rapidly as that in Phase I. For this reason, we decided to appoint Jones Lang LaSalle as the sole sales agent for Prima Wongamat Phase II, taking advantage of their strong connections to both local and foreign buyers,” said Itthi. “We also believe that our partnership with Jones Lang LaSalle that has a strong global brand will also ensure confidence of buyers in the project further,” he added.

Prima Wongamat Phase II occupies one of the best locations along Wongamat Beach, Pattaya. Upon completion in 2015, the project will comprise a 34-storey tower, featuring 108 fully furnished condominium units, a 7-storey serviced apartment component, and a 4-storey parking space. Conveniently located on Naklua Soi 18/1 in North Pattaya, the project also provides direct access to the beach.

The condominium component offers a variety of unit types ranging from studios, units with one to three bedrooms, penthouses with four bedrooms to grand penthouses with five bedrooms. Located on floors 14 to 34, all units will enjoy an unobstructed sea view.

Suphin Mechuchep, Managing Director of Jones Lang LaSalle, said, “Pattaya has become an increasingly popular choice for holiday-home buyers, due to improved facilities and more convenient accessibility from Bangkok. Increased availability of condominiums for sale in this market is another factor that helps attract more buyers into Pattaya.

“However, in the emerging market of Pattaya, condominium buyers could be bewildered by a wide choice of products that are on offer. In addition, there are many local and foreign developers taking part in this market. In such an environment, projects that obtain buyers’ confidence have a good chance to succeed. The developer’s profile is one of the major factors in ensuring buyer’s confidence,” she commented.

Petch Pattaya Development is a well-capitalized Thai property development company with a reliable track record from the development of high-end condominium The Cove, located in the same compound as Prima Wongamat. The company belongs to the well-known Chavalittamrong family, which has a strong financial base and also owns a large land portfolio in Pattaya, including the land on which Prima Wongamat has been developed.

Rajneeporn Bishop, Head of Residential Agency at Jones Lang LaSalle, said, “Prima Wongamat Phase II is a very unique condominium development in Pattaya. While most of the new condominium projects in the city offer smaller units, unit sizes at Prima Wongamat Phase II range from 41sqm for a studio unit to 846sqm for a grand penthouse. In addition, all units are fully furnished to high specifications including imported furniture, making offered prices at Prima Wongamat more attractive compared to condominium projects of a similar grade in the same area.”

Prices at Prima Wongamat Phase II start from THB 102,500 baht per sqm, including state-of-the-art interior design and furnishings such as mahogany hardwood floors, switchable opaque-to-transparent glass-wall bathroom, marble rock bedded bathtubs, leathered walls, floor-to-ceiling UV-proof windows and elevatable flat-screen LCDs.

“Prima Wongamat also offers a strong potential to enjoy a capital appreciation in the future as beachfront land available for new development in Pattaya is scarcer,” Rajneeporn added.

Upon completion in 2015, residents at Prima Wongamat will have access to a full range of exclusive luxury facilities including a swimming pool, club house, fitness room, sauna room, and surrounding and rooftop gardens.

Waterfront full scale piling begins

Construction vehicles from Times Enterprise are seen on the Waterfront site.

April saw a significant step in the construction of Waterfront Suites & Residences by Tulip Group. In the past 3 months soil testing and bore piling has been progressing and is now complete. On April 27, Times Enterprise from Malaysia mobilized with heavy machinery to begin full scale piling works.

CEO for Tulip Group, Kobi Elbaz, expressed his delight that Times Enterprise had entered the Waterfront site: “Today is an exciting day for our company, our loyal customers and Pattaya City, it has not been easy locating a company that were capable of fulfilling the demands of this project, and our trips to Malaysia and regular meetings with Times are now all worthwhile.

“Actually seeing the machinery on site and contracts agreed and signed is very satisfying- we are excited about seeing this amazing building grow into the Pattaya Skyline,” said the Tulip chief.

Waterfront Suites & Residences is almost 60% sold and will be completed by the first quarter of 2015. Piling works are expected to be completed in approximately six months and the brand new showrooms will likely to be completed in the next 6 weeks.

CBRE locates eco-friendly office space for Carlsberg Thailand

CBRE Thailand successfully located the office of Carlsberg Indochina and Carlsberg Thailand at Park Ventures Ecoplex, an eco-friendly Grade A office space in Bangkok’s CBD. Pictured in the photo are Jacob Vigso Hermansen, 2nd from right, General Manager of Carlsberg Thailand being presented with an office leasing agreement by Thanapol Sirithanachai, 2nd from left, Managing Director of Univentures Plc., Nithipat Tongpun, left, Executive Director, and Maneerat Vichitrattana, right, Director of CBRE Thailand, the sole leasing agent.

Raimon Land completes VUE, The River’s boutique fusion mall

Hubert Viriot, left, Raimon Land Chief Executive Officer, and Tjeert Kwant, Chief Executive Officer of ECC, ink the management agreement for VUE, Thonburi’s first boutique fusion mall.

Top property developer Raimon Land is preparing the launch of its first boutique fusion mall, located adjacent to The River, one of Bangkok’s most exclusive residential complexes along the Chao Phraya. The 30-shop lifestyle center, featuring restaurants, specialty retail shops, a supermarket and various service outlets, will cater to residents of The River and to the growing community in the Thonburi area.

Raimon Land has also announced the signing of VUE’s management contract with ECC International Real Estate, an experienced shopping mall developer and manager. The international retail specialist is behind Promenada Chiang Mai, the first resort mall in Chiang Mai and the northern region, which is set to open in the second half of 2012.

The contract between the two companies covers general operations and services, including lease agreements, marketing activities, tenant coordination and shopping mall management.

Set to open in June 2012, VUE has already allocated over 60% of its retail space, with key tenants such as MaxValu retail supermarket, Shabuken and Daichan-Yakiniku for food & beverage, Smart Kids and Cookery Academy for edutainment and a bank branch for services. In addition, plans to open an al fresco coffee shop and a roof top event garden are being considered. Raimon Land’s office for customer assistance and after-sales services will also be located in the new mall.

Hubert Viriot, Raimon Land Chief Executive Officer said, “I see two key benefits from VUE’s timely opening. The first is for The River’s homeowners and tenants, who will appreciate the convenience of having retail and service outlets right at their doorstep as soon as they move in. The second is for Raimon Land itself, as it marks our company’s diversification into the retail world through a boutique mall that perfectly complements The River complex.”

Tjeert Kwant, Chief Executive Officer of ECC, is confident of VUE’s success. “Currently, retail for daily convenience is fragmented, so the concept of a community mall to serve the rapidly growing community in the Thonburi area, as well as the residents of The River, is highly promising. It also brings nature to the consumers, by providing lush greenery and landscaped spaces where they can hang out in a relaxing atmosphere. In the future, we plan to develop more centres based on a similar concept,” he said.

VUE is Raimon Land’s first commercial centre project. Constructed by Bouygues-Thai, the 30-shop complex has a total rental space of 4,000 sq. m. Interested parties are invited to contact ECC Thailand for commercial spaces that are now ready for fitting.

Bangkok office rents at highest levels for 20 years

Average Grade A Office Rents in Asia Pacific as of Q4 2011.

Bangkok office rents have seen little change since 2009, but are now starting to rise and have topped the last peak which was 20 years ago.

Park Ventures, the recently completed Grade-A eco office building on the corner of Wireless Road and Ploenchit with direct access to the BTS, is now achieving rents of over THB 850/square metre/month. The last building to achieve this level of rent was GPF Tower, (then Diethelm Tower), on Wireless Road when it was completed in 1992.

Park Ventures office building in Bangkok.

James Pitchon, Executive Director of CBRE Thailand believes rentals will continue to increase for the best quality best located buildings. This is backed up by CBRE Research.

“The total Bangkok office stock is 8.12 million square metres of which 1.15 million square metres or 14.13% is vacant, but a significant amount of the vacant space is in buildings that are in less popular locations and older buildings that are in some cases technically obsolete.”

“There is only 390,000 square metres under construction due for completion by the end of 2014. Demand is starting to increase, vacancy rates will fall and rents will rise.”

Bangkok office rents have been among the lowest in the Asia Pacific Region along with Wellington, Manila and Jakarta. Grade-A rents in Hong Kong are 7.5 times more expensive than Bangkok, while Singapore and Mumbai are four times more expensive. Regionally, some of these office markets appear to have peaked and are now falling such as Hong Kong, Singapore and Kuala Lumpur.

Rents in Vietnam both in Ho Chi Minh City and Hanoi continue to fall because of the troubled economy and new supply. However, Vietnamese office rents still remain between 60% - 80% more expensive than Bangkok. Conversely, office rents are rising in Bangkok, Manila, Jakarta and most Australian cities.

“Current rental levels in Bangkok make it difficult to build new office projects unless the land has been acquired at below today’s prices. We will only see developers start to build offices when the rent rises above THB 1,000/square metre/month which is why there is only a limited amount of space under construction,” said Pitchon. Also, few listed developers have office expertise, having focused exclusively on residential condos.

CBRE Thailand expects that the rental gap between the best located and best quality buildings and other less attractive developments will start to increase. The highest Grade-A CBD rent is THB 850/square metre/month and the cheapest Grade-B non-CBD rent is around THB 400/square metre/month. This is a very small spread in rentals compared to other cities.

CBRE believes that tenants are increasingly willing to pay a higher rent for the best located buildings that function well.

Office tenants in Bangkok base their choice of office premises on three main criteria- location, especially proximity to mass transit routes, utility i.e. usability and quality of the building, and cost. More companies are treating proximity to a mass transit station, preferably with direct covered access, as a priority. Office buildings next to mass transit stations are getting higher rents than other buildings and will continue to do so.

The usability of the building combines a number of factors, particularly the shape of the floor and floor plate. The most efficient and well laid out offices require column free floors with a window to core depth of 12 to 15 metres and ceiling heights of more than 2.8 metres. This allows tenants complete flexibility in their layout and allows them to accommodate more people in less space while maintaining a good workplace environment.

Tenants want efficient lifts to minimize waiting times – one of the biggest complaints about old buildings is that the lifts are slow and it can take minutes not seconds to enter a lift at peak times. An efficient air-conditioning system that can maintain a constant temperature in all areas of the office is also important; the air-conditioning systems in many older buildings cannot do this.

Other features are the provision of good security features such as fire safety, turnstiles and destination control lifts. Currently, the new generation of office buildings in Bangkok such as Park Ventures and Sathorn Square are as good in terms of technical specifications as many of the Grade-A developments in Hong Kong, Singapore and Tokyo, but the rentals are a fraction of the costs in these cities.

Cost continues to be a critical determining factor but companies need to balance cost against providing an efficient and attractive work space. Companies are willing to pay for the best location and utility, which is why coupled to the supply and demand situation, CBRE believes that rents will continue to rise notably for the best located best quality buildings.

Qatar fund snaps up hotels on Italy’s Sardinia

Qatar has signed a deal to buy the operator of four luxury resorts and other properties on the island of Sardinia as the wealthy Gulf emirate looks to bolster ties with Italy.

The purchase coincided with a visit to Rome last month by the country’s emir. It is the latest deal in a European shopping spree that has given the natural-gas rich state a stake in European banks, energy companies and some of the continent’s best known brands.

State-owned Qatar Holding, an arm of the country’s sovereign wealth fund, said it will acquire resort operator Smeralda Holding from Los Angeles-based real estate investment firm Colony Capital.

The deal includes the Cala di Volpe, Pitrizza, Romazzino and Cervo hotels, a marina and shipyard, a golf club and a 51 percent interest in 2,290 hectares (5,660 acres) of undeveloped land nearby.

Qatar Holding plans to keep Smeralda’s existing management, and said Starwood Hotels and Resorts Worldwide Inc. will continue to run the hotels.

Financial terms were not disclosed and the deal must still be approved by Italian regulators.

(by Adam Schreck/AP)

Multi-billion baht riverside project announced by Siam Piwat and Magnolia

A sensational 35 billion baht development that promises to unlock the beauty of the Chao Phraya river and position Bangkok as one of the region’s most desirable destinations was announced in March by a powerful partnership between Siam Piwat – the owner and operator of Siam Paragon, Siam Center, and Siam Discovery – and Magnolia Quality Development, together with the CP Group.

Set on a spectacular 40-rai plot that is positioned at one of the most beautiful, central locations on the river, the development promises to become a dazzling destination within the city. It will include a rich combination of everything essential for 21st century living, outstanding retail facilities, and a magnificent residential condominium. The project is set to be the largest and grandest commercial development ever undertaken by the private sector in Thailand.

“This is a ‘once-in-a-century’ occasion”, said Chadatip Chutrakul, CEO of Siam Piwat Co., Ltd. “Our sensational new undertaking represents a historic paradigm shift in the design of commercial developments in Thailand: it is now about ‘fulfilling your lifestyle needs at the place you have chosen to go for relaxation’ she said.

Chadatip added, “This land is blessed with a breathtakingly beautiful view and great business potential. It lies close to Bangkok’s central business district with the broadest reach to potential customers, whether they be Thais living along the north and south banks of the river who will have easy access by boat, or Thais and foreigners working and living in the business districts of Silom, Sathorn, Sampeng, Naradhiwas Rajanagarindra, as well as residents in the Thonburi and Rajapruek areas, and a large number of tourists staying at 5-star hotels all around the development. It is a really strategic location in western Bangkok.”

She said the emerging trend in differentiating a development is to leverage unique locations and to offer an extraordinary experience at that location.

“We are pioneering this new era in the design of such developments in Thailand, leaving behind the phase of ‘mixed-use’ developments and moving forward to what I call the era of ‘magnificent location’ developments.”

Tipaporn Chearavanont, CEO, Magnolia Quality Development Corporation Ltd., said, “This land, firmly placed at the centre of the city’s river life, has been lying full of untapped potential. It has witnessed the evolution of Bangkok and life along the Chao Phraya River for centuries. And it will now become a hugely sought after prestige address that is priceless, and one that proudly carries that heritage.”

Tipaporn continued, “We want to create a physical and an emotional landmark; not just another building or commercial venture, but something that can further enhance Bangkok’s stature in the region and the world; something that will become a new attraction in the city for both local and international visitors. That’s because we have seen that iconic landmarks on a city’s main river can move that city forward – whether in Paris, London, Shanghai or Sydney.”

Tipaporn said that Magnolia has placed a lot of emphasis on integrating sustainability into any project in which it is involved, so that communities and the environment are enhanced by its projects, and, as an example, she cited discussions that were already underway with the BMA on preserving the natural beauty of the surroundings.

“The project is a milestone undertaking in our country that will further enhance the stature of commercial developments in Thailand and place it on a global stage,” she noted.

According to Tipaporn, the project will create employment for around 350,000 people during the next four years.

Project details are scheduled to be finalized and bookings for retail space taken at the end of this year, with construction to be completed in 2015.