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Former Miss Thailand becomes
brand ambassador for Tulip Group
As originally forecast in our May edition of Pattaya
Mail Property News, The Tulip Group have confirmed the appointment of
Pannada Wongphudee (Boom) to be the brand ambassador for the high end
property company.
The appointment was officially made public last month and
Pannada will take part in an all new marketing campaign for the group’s
premier condominium and hotel development- Centara Grand Residence Pattaya.
In an interview with “2 Magazine” Boom explained that she
had in-fact purchased one of the projects most exclusive units, a stunning 3
bedroom duplex with private swimming pool, and in an unusual move she
actually approached Tulip Groups Vice President Jason Payne after purchasing
the room about working with the group.
“I personally contacted Jason about becoming brand
ambassador, after falling in love with the project. Tulip Groups projects
are outstanding and untouchable in my opinion” said Pannada.
Questioned why she would make a good ambassador for the
developer her reply was simple: “Why? Because I am a real customer who fell
in love with the project, what better recommendation is that! I am not
someone who has been paid to promote the project. I will be promoting the
project because I simply love it.”
Pannada Wongphudee (Boom),
right, with Jason Payne,
the Vice President of Tulip Group.
Vice President Jason was equally thrilled that the Thai
star had agreed to represent the company. “It’s very special for us that
someone as well known as Boom was genuinely excited about working on
promoting our brand. It was of great surprise when she phoned me to discuss
about working together, and I am looking forward to developing a close
working relationship with her.”
The Tulip Group currently has 3 condominiums and 4 hotels
under construction in the seaside resort of Pattaya, and is working hand in
hand with Centara Hotels & Resorts, Park Plaza Hotels Europe and Holiday
Inn.
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Blue Sky Group secures
project finance for
Grande Caribbean Condo
Surjeet Singh Chawala,
Director of Blue Sky Group (4th from left) and Jaree Wuthisanti, Krung Thai
Bank Senior Executive Vice President Corporate Banking Group 1 (3rd from
left) shake hands on the 1,150 MB loan agreement to support Grande Caribbean
Condo Resort Pattaya.
The Blue Sky Group has recently signed a 1,150 MB loan
agreement with Krung Thai Bank to support Grande Caribbean Condo Resort
Pattaya, the second in a line of condominium projects in Pattaya by the
renowned developer.
Built on a 11.5 Rai plot of land between Pattaya and
Jomtien Beach, the project will consist of 1,064 units in four 8-storey
buildings and one 30-storey tower with a colorful, modern and tropical
Caribbean design theme.
Blue Sky Group is a Thai owned company that holds
significant financial assets and has a long history of experience within the
resort and hospitality sectors in Thailand. The signing ceremony was held at
Grande Caribbean Condo Resort Pattaya showroom on 13 July.
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Making a Point: Nigel Cornick back with
a bang on the Pattaya real-estate scene
This summer marked the return to Pattaya of a familiar
face to the local real estate sector when ex-Raimon Land CEO Nigel Cornick
announced his new development vehicle Kingdom Property had secured finance
from the Krungthai Bank for their first major project in the city, and
indeed Thailand, the THB 2 billion Southpoint condominium on Pratumnak Hill.
The Pattaya Mail recently conducted an interview
with Mr. Cornick to discuss his new venture in the local real estate market
and to also garner his views on the overall property scene, both in Pattaya
and around Thailand in general.
But first, how had the Kingdom Property CEO been keeping
himself busy over the past couple of years?
“After leaving Ramon Land in 2009 I went into partnership
with the Brooker Group and established Biswanger Brooker (Thailand), a
boutique property services company. We were busy helping our clients with
acquisitions and the like, but frankly, once you’ve had the bite of
development it’s very hard to get it out of your blood,” Mr. Cornick
answered.
“For the last 3 years we’ve been looking for
opportunities and we were finally able to secure a site,” he continued. “We
recapitalized Kingdom Property and bought 4 rai on Pratumnak Hill on soi 7.
We were very fortunate to secure this site as it’s not easy to find 4-rai of
land consolidated in a prime location such as this.”
Kingdom Property CEO Nigel
Cornick talks about his
new project to Pattaya Mail TV.
Designed jointly by Bangkok based architects The Beaumont
Partnership and SODA Thailand (Stephen O’Dell), the plans for Southpoint are
for 2 towers, one 20-storey and one 28 storey, with 42,000sqm of living
space. The company also promises that South Point with incorporate some
eye-catching landscape features.
“Our landscape architect, who is based in Singapore, has
come up with some truly unique and innovative ideas for the landscaping for
this project. They will really be well worth seeing,” said Nigel.
With prices set to start at approx. THB 65,000 /sqm the
company feels the project will be an attractive proposition to many sectors
of the real-estate marketplace.
“We’ll test the market but we think the 1 and 2 bedroom
units will be the most sought after; that seems to be the feedback we are
getting from our research,” said Mr. Cornick.
“It (Southpoint) is a very modular design, if we find
that there is more demand for larger units we have the ability to combine
the smaller ones,” he added.
The design team led by Colin
K. Okashimo from CKOA (left) meet with Nigel Cornick (right) to discuss the
plans for the Southpoint project.
The project is expected to be officially launched later
this year with presales scheduled for September or October. The decision to
hold off from launching presales too far in advance of construction is
something the Kingdom CEO says will pay dividends down the line.
“You need to show people what they are going to get, so
it’s essential to have a proper sales office and showroom ready so customers
can see the quality of the product you are offering,” he said.
And who does Kingdom Property see as their main target
sales groups for Southpoint?
“The Russian market you can’t ignore,” said Nigel. “I
would think most new developments in Pattaya are achieving at least 20%
sales to Russians.
“Also, with the Thai market, the Pratumnak area has
historically got connections with the Royal Varuna Yacht Club and a few
years ago this was the area that many Thais wanted to live. We are going to
try and rekindle that interest and we are talking with Varuna Yacht Club
about developing certain associations.
“However, we believe that South Point will appeal to all
customers, whether Thai or foreign, looking to invest in a quality
development. This (project) will fill a gap between Jomtien and Naklua as
both of those areas are getting heavily focused on from a development
perspective,” he added.
With some investors holding concerns about the
consequences of the financial problems in the Euro-zone, and a possible
over-supply of rooms here in Pattaya, how does he view the immediate and
long term future for the property market here in the city?
A scale model of the
Southpoint development.
“At Kingdom Property we are firm believers in the
real-estate industry in Pattaya,” replied Nigel. “People thought I was crazy
when I first came here (with Raimon Land) - certainly my staff at the time
did, they just couldn’t see the potential. But I could see that the
opportunity was here and apart from a slight hiccup in 2008 the market has
continued to grow.
“What happens in the rest of the world doesn’t
necessarily reflect in the Pattaya market,” he added. “Most of the major
developers here have actually thrived since the 2008 global financial
crisis.
“The tourism driver for Pattaya is going to be huge,” he
continued. “The mayor is predicting something like 2 million visitors just
from India alone in the next 2-3 years, which is significant if you bear in
mind the Russian tourist numbers now are about 700,000.
“There are something like 47,000 hotel rooms in Pattaya
of varying standards, but we see the main call in the future coming for the
3-4 star market. Demand for accommodation will be the driver for investment
decisions. Possibly tour groups will purchase blocks of units in
developments. There are many diverse investment opportunities that are going
to be created because of the momentum,” Nigel added.
The disastrous floods that hit other parts of the country
last year also seemed to see a shift in the focus of investors who began to
look at Pattaya and the Chonburi region in general as a more attractive
proposition for future property acquisitions. Does Kingdom Property also
share this viewpoint?
“Yes, the industrial base in the Eastern Seaboard is
going to continue to grow and we expect the take up of industrial land in
the area to be the highest ever following the flooding last year that
affected the other parts of the country,” replied Mr. Cornick. “Just on the
industrial base alone, you have to be confident that Pattaya is going to be
ahead of the field.”
Award winning architect
Stephen O’Dell unveils his interior designs for Southpoint.
And how does the city compare to other resort
destinations in Thailand?
“Phuket was rightly considered to be the jewel in the
crown, and in many respects it still is” says Mr. Cornick, “but it was hit
hard by the 2008 economic crisis and hotels and resorts there have had to
adjust their room rates to attract more of the larger tour groups, which
means the island has maybe lost a bit of its shine in recent times.
“Hua Hin, because of the royal family connection has
traditionally always been a popular destination for Thais, but Pattaya, with
its myriad of attractions, is starting to appeal more now to the younger
Thai buyers,” he added.
Does he see any potential stumbling blocks for Pattaya’s
development in the future?
“The planning and implementation is where Pattaya has got
to look at itself, look to improve its infrastructure: water, sewerage,
roads etc. – it’s the major challenge for this city but we remain hopeful,”
replied the Kingdom Property chief.
Southpoint marks the company’s first foray into real
estate development, so what can we expect in the future from Kingdom
Property?
“We’ve got 2 other projects we are looking at in Pattaya,
hopefully we will be able to secure at least one of those in the next 6
months,” replied Nigel. At the moment we are primarily focusing on Pattaya
and the Eastern Seaboard, but if something interesting came up in Bangkok or
elsewhere, possibly as a joint venture, then we would look at it on its
merits,” he added.
As a final note Mr. Cornick left us with his positive
perspective for Thailand’s economy in general.
“This country is the number 1 tourist destination in Asia
and I don’t see that changing,” he said. Thailand is unique in that it opens
itself to all nationalities, religions etc., and as long as the political
situation remains stable there is no reason why we shouldn’t be confident
about the future here,” he concluded.
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Design teams announced for Centara Grand Resort and Spa Jomtien
Luxury Property Developer Tulip Group recently announced
that August Design and P49 “Deesign” have been awarded contracts for their
luxurious mixed used project in Na Jomtien. Tulip Group will build two
towers for luxury condominiums which will be branded as Centara Grand
Residence Pattaya, and a third tower for a 5 star luxury hotel named Centara
Grand Resort and Spa Jomtien.
An artist’s drawing of the
completed Centara Grand Resort and Spa Jomtien.
Located in Na Jomtien the 19 rai beachfront site with a
150m beach frontage will offer the latest in stunning architectural design,
with the towers being originally designed by world class architects HB
design from Singapore.
The development will include over 18000sqm of
landscaping, swimming pools, restaurants and numerous other world class
facilities, and the entire project will be managed by Centara Hotels and
resorts on completion.
“We are delighted to be working with two such prestigious
and well known design companies, both have worked with Centara Hotels and
Resorts before, and both have an impressive track record and customer
portfolio” said Tulip Group Vice President Jason Payne.
August Design Consultant is a full service interior
design company and is headed by Pongthep Sagulku and his associates. All
staff are fully accredited interior designers with vast experience in all
styles of design work.
“The company philosophy is quite simple and straight
forward. We always aim to design spaces and things according to the
appropriated architectural context, requirement, budget without any
preconception in mind and if possible, we try to keep our design as simple
as possible so that they always have a certain aspect, durability and
timeless, and above all, we do believe in quality rather than quantity,”
said Pongthep.
Current clientele include global hospitality brands such
as Starwood, Marriot, Hilton, Accor, Ascott, Anantara.
P49 Deesign specializes in working with the very best
hotels and resorts, both in Thailand and throughout the world. In-fact 80
per cent of its projects are located outside Thailand. Clients include top
hotel chains such as InterContinental, Six Senses and Four Seasons.
P49 Deesign is Thailand’s foremost interior design
practice. Founded by Vipavadee “Pao” Patpongpibul in 1979, the company is
unique, with unparalled experience in Hotels, Resorts, Spas, and the
Corporate and Banking sectors.
Construction on Centara Grand Resort and Spa Jomtien will
commence in the last quarter 2012 and completion is scheduled for 2015.
Tulip Group sales
figures surge ahead
Traditionally the months of June and July are very slow
months for property developers in Pattaya and Thailand in general. Tourist
numbers during these months are at a low and business in the region is
normally at its lowest at any time of the year. Local businesses normally
spend this period preparing for the typical high season which normally kicks
in from September.
Pattaya Property Developer Tulip Group however appear not
to be suffering from the traditional “low season” after reporting extremely
encouraging sales figures for the months of June and July. The developer
reports sales of 400 Million Baht from its two main projects Centara Grand
Residence and Waterfront Suites and Residences.
“The last 2 months have been great for us, visitor
numbers to our showrooms are down, but the clients that are visiting are
serious buyers,” said Vice President for Tulip Group Jason Payne.
Tulip Group has put the success down to their marketing
philosophy which is largely driven towards the Thai sector, mainly from
Bangkok.
“From day one we knew that our two premium projects would
be of interest to Thai investors, branded residences are common in Bangkok,
but not in Pattaya, so our marketing campaigns have been very strongly
planned around attracting buyers from the capital, in addition to this,
interest has remained very strong in our Waterfront project from foreign
investors especially now that construction has started,” said Payne
Tulip Group, are currently developing three branded
residences, two of which are with Centara Hotels and Resorts and one with
Park Plaza Hotels Europe. The group, are also close to finishing their first
hotel with Centara which will open next year. Centara Grand Pratanmak, which
is a boutique style “Grand” offering luxurious facilities, opulent design
and offers amazing views of Cosy beach and surrounding islands.
Tulip Group will also launch in September a further
branded property in the centre of the city, which will consist of a hotel
and three residential condominium buildings. The low rise project on 5 Rai
of prime city centre land will house 500 condo units and is targeted at
local and international investors looking for a quality mid ranged priced
product, with easy access to the city’s plethora of bars, restaurants,
shopping centers and entertainment areas.
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Construction begins
on The Private Paradise
Suthichai Rodurai, deputy MD
of Ito Thai Asset Co. Ltd, launches the Private Paradise condominium
groundbreaking event, Sunday, July 15.
Construction has begun on ITOH-Thai Assets Co.’s The
Private Paradise condominium development on three rai of land behind
Bangkok-Hospital Pattaya.
ITOH-Thai Managing Director Suthichai Rod-urai welcomed
customers to the July 15 groundbreaking and thanked purchasers by offering
50,000-100,000 discounts or refunds.
Staff give advice on the
project to potential investors.
The 572 million baht development offers 299 furnished
units beginning at 1.55 million baht. It features 32-42 sq. meter
one-bedroom, and 52 sq. meter two-bedroom units.
Despite their relatively small size, all the units seem
larger, due to effective design. Outside, tenants will find a swimming pool,
fitness center, restaurant, caf้ and supermarket with on-site security.
The company is considered as a newbie in the real estate
industry but it has received a warm response. The Private Paradise is one of
four projects for ITOH-Thai and is aimed at Bangkok Thais looking for a
weekend retreat.
Sample rooms are available for viewing at Sukhumvit Soi
28 behind Bangkok Hospital Pattaya. Call 082-779-3222 or see OKHappyTime.com
for more information.
(By Phasakorn Channgam/Pattaya Mail)
A lucky customer receives a
50,000 baht discount on her condo purchase.
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Raimon Land holds Treasure Hunt
Open Day at ‘The River’
Six hundred families and
homeowners gathered to take part in
the Treasure Hunt event.
Leading property developer Raimon Land recently opened
the doors to The River, Bangkok’s iconic residential complex along the Chao
Phraya, for its first ever Open Day event.
Six hundred homeowners, prospective buyers and their
families helped make The River Treasure Hunt a tremendously successful
event. During the two-day quest, treasure hunters were sent out to explore
and discover valuable prizes such as cash discounts on The River units,
smart home systems, furniture vouchers, free unit transfer fees, free common
area fees, or free sinking fund fees. In addition to the loot, Raimon Land
also served up entertaining side activities for visitors throughout the
hunt.
While providing visitors with a genuine The River
lifestyle experience, the event enabled Raimon Land to boost the sale of the
remaining units at the project and achieved sales booking of nearly 200
million baht for the Bangkok’s iconic residential complex along the Chao
Phraya.
A diligent hunter finds some
treasure: a free weekend stay at the Raimon Land Private Residences Club.
In addition to the Treasure Hunt event, Raimon Land also
recently introduced 2 new products for Bangkok’s tallest residential
development, namely The River Serviced Residences and The River Home
Offices.
The River Serviced Residences will be a top-of-the-line
property investment that will offer tastefully furnished and fully equipped
units for expatriates, as well as leisure and business travelers on extended
stay basis. The River Serviced Residences will be managed by a leading
5-star hospitality operator to achieve efficiency, profitability and guest
satisfaction with a guaranteed 3-year lease back fixed return of 6% per
year.
The River Home Offices meanwhile are designed to fulfill
a specific demand from a genre of professionals, consultants, businessmen
and artists who are interested in maximizing their real estate investment to
accommodate both work and private life.
Strategically situated on the Podium Level of the North
and South Towers, eight home office units will be available on a
first-come–first-served basis. The eight hybrid units, ranging in size from
105 to 287sqm, will have direct access to the three swimming pools and lush
greenery. Also to be featured in this special zone will be a convenience
store, a restaurant and deli that will serve the residents of The River and
their guests.
The River began ownership transfers in June, 2012, in an
orderly fashion commencing from the low zone to the high zone of South
Tower, space allotments are being filled on a daily basis. To date more than
60 units have been successfully transferred.
For more information on all the company’s projects
including The Zire, Northpoint, and Unixx developments in Pattaya, visit
www. raimonland.com.
A happy couple discovered a
free furniture voucher hidden away.
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Colliers appointed agents for Focus@Ploenchit condo
Anucha
Sihanatkathakul, right, Executive Chairman of Focus Development and
Construction Public Company Limited, and Monchai Orawongpaisan, left,
Associate Director of Project Sales & Marketing, stand with Simon Landy,
centre, Executive Chairman of Colliers International Thailand at the Alma
Link Building after signing the agreement for Colliers to act as sole
selling agents for the Focus@Ploenchit development. The project value is
approximately THB 800 million and is expected to be launched in Q3 this
year.
Red Planet makes major investment in Tune Hotels
Red Planet Hotels Limited, Asia’s emerging force in low
cost hotel development and operation, has invested in a 16.05% stake in the
rapidly expanding Tune Hotels operation as both companies seek to grow the
booming low cost hotel brand.
Tim Hansing.
The deal cements Red Planet Hotels - who is a major
franchisee of the brand across South-East Asia - as the third largest
investor in Tune Hotels with 9,975,038 shares, providing further value to
Red Planet Hotel’s shareholders.
The largest shareholder in Tune Hotels remains Tony
Fernandes, founder of the phenomenally successful Tune and Air Asia brands.
This major investment also results in Red Planet Hotels
invited to take up a seat on the board of directors, enabling Red Planet
Hotels to be actively involved in the future of one of the world’s fastest
growing hospitality concerns.
While the value of the deal remains undisclosed it is a
“significant multi-million dollar transaction” and the largest single
corporate investment Red Planet Hotels has clinched in its two-year history.
The investment in Tune Hotels comes at a time when Red
Planet Hotels’ latest round of fund raising was over-subscribed and the
company now has USD180 million of hotel projects (containing 3,191 rooms)
either operating or under construction in Asia.
Red Planet Hotels Chief Executive Officer, Tim Hansing,
said the investment represented Red Planet Hotel’s pledge to the brand and
the founding members’ vision for the Tune Hotels concept.
The Tune Hotel Pattaya.
(Photo/Tune Hotels)
“This significant investment and commitment to the Tune
Hotels brand is indicative of Red Planet Hotels’ well-balanced long-term
development programme and provides tremendous value growth to our existing
shareholders,” Mr. Hansing said.
“As we move towards becoming a major owner and operator
of Tune Hotels properties, this investment and endorsement of Tune’s board
and management allows Red Planet Hotels to participate and contribute
constructively and meaningfully for the benefit of both companies.
“Each will reap significant rewards through our
investment and I am delighted that Red Planet Hotels’ commitment to Tune
Hotels has resulted in us being invited to join its board.”
Tune Hotels has quickly established itself as the leading
player in the low cost hotel space just as Air Asia did in the low cost
airline industry.
Established in 2007, currently there are 24 Tune Hotels
operating 3,859 rooms globally.
There is a confirmed additional pipeline of 38 more
hotels with 10,106 rooms, including the first hotels in India, Scotland,
Australia and Saudi Arabia along with additional properties in Thailand,
Indonesia, the Philippines, Malaysia and England.
By the end of 2012 Red Planet Hotels will have 10
operating hotels with 1,623 rooms in Thailand, the Philippines and
Indonesia.
Last month, it opened the first Tune Hotel in Jakarta,
Indonesia (168 rooms) and a fourth in the Philippines in Makati (215 rooms).
Later this year, Red Planet Hotels will open a Tune hotel
in Asoke, Bangkok (130 rooms - September), Pekanbaru, Sumatra (143 rooms -
December), and Patong, Phuket (150 rooms - December).
Red Planet Hotels is exploring closer levels of
co-operation with Tune Hotels across various platforms in the near future in
a sign of its commitment to each other’s goals in the low cost hotel sector.
Red Planet Hotels Limited (RPHL) was formed in 2010 and
is a privately owned regional hotel investment company focused on Asia’s
emerging markets by developing a portfolio of budget hotels in China,
Indonesia, the Philippines, Thailand and Bangladesh.
RPHL owns the hotels it operates and they are all managed
under a franchise agreement with Tune Hotels. RPHL was formed with a vision
to capture the growth in the worldwide limited-service hotel market,
supported by the growth in budget airlines and the robust economy of the
ASEAN region and China.
Headquartered in Bangkok, RPHL now has 3,191 Tune Hotel
rooms under development or in operation.
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Phuket hotel occupancy and
residential demand on the rise
The Aquaminium at Royal
Phuket Marina, a CBRE managed property, offers condominium units for sale
starting from THB 5 million.
Property management company CB Richard Ellis Thailand has
just released its Q1 2012 Phuket Property Report conducted by the company’s
own research team.
The report shows some significant changes in several
sectors of the Phuket market. Q1 2012 was a record first quarter for tourist
arrivals with 594,999 domestic and 730,667 international passenger arrivals.
Despite global economic uncertainty, tourism continued to grow with the
expansion coming from Australia, China and Russia.
Hotels benefited from the increase in arrivals with the
average occupancy rates increasing to 82.7% from 80.5% in Q4 2011. Luxury
and first-class hotels were the best performers in terms of occupancy. The
average achieved room rate of these hotel grades were THB 22,835 (6.8%
Y-o-Y) and THB 7,425 (5.0% Y-o-Y), respectively.
There are currently 13,171 keys in 83 existing upscale
hotels and 5,471 keys under construction in 30 hotels due for completion by
2014. According to David Simister, chairman of CBRE Thailand, “New supply is
not confined to the West Coast, but shows a wider geographic footprint
including Koh Siray which is located east of Phuket Town on a peninsula.”
The overall resort residential property market remains
solid on values, but quiet in terms of new launches of both villa and
condominium projects. Developers have focused on clearing inventory. Notable
new launches include the Malaiwana condominiums and beach club, a luxury
product part of a larger successful villa development with an average price
of THB 80 million, and the Vertigo Villa project on Surin beach with prices
ranging from THB 60-90 million.
A new residential market has emerged, non-beachfront
non-resort condominiums, developed by Bangkok listed developers such as
Sansiri and Supalai. New off-plan projects have been successfully selling
condominiums inland aimed at local Phuket residents mainly studio units,
sized 29-37 square metres with average prices at THB 1.5 million. It remains
to be seen how deep market demand is in this sector and what else may come
to the market.
Based on the CBRE Research’s survey in Q1 2012, 60 resort
villas were sold. Sales were spread across all price ranges. CBRE segments
the villa market into below THB 15 million, THB 15-35 million, THB 36-90
million, and over THB 90 million. Villas below THB 15 million made up 50% of
the sales, but at the top of the market, two sales were recorded in excess
of THB 120 million.
The Sava located across the Sarasin Bridge in the Phang
Nga province has reportedly sold all seven villas at prices ranging from THB
62-180 million, three of which were sold this quarter.
In the resort condominium market, the report shows that
84 units were sold in Q1 2012. Sales were concentrated in five projects
where the main sales were one bedroom units with average prices of THB 5.9
million. There are about 3,700 completed resort condominium units in Phuket.
By comparison to Pattaya, there are 22,000 completed condominiums and a
further 21,500 under construction. The main product in Pattaya is a THB 2-3
million one-bedroom condominium.
“Despite healthy increases in tourism arrivals, CBRE is
not, for now, seeing proportional increase in sales in the resort property
market. The rising tourism numbers are mainly from Asia whose tourists have
yet to become resort property buyers,” said Mr. Simister. “Over time repeat
tourists will create fresh buying demand and new product will emerge to
match their requirements. The quarterly report is essential reading for
anyone involved in hotel and residential developments in Phuket,” he added.
For more information, visit the company’s website at
www.cbre.co.th.
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Home Buyers’ Expo to be held during 23-26 August
Three grand-scale housing events in one, including the
Home Buyers’ Expo 2012, Non Performing Asset (NPA) Grand Sale 2012, and Home
Loan 2012, are all scheduled to take place between August 23-26.
The Housing Finance Association and Home Buyers’ Guide
are preparing to hold the three housing events at Bangkok’s Queen Sirikit
National Convention Center, with an aim to draw in 300 billion baht in
circulation during the events.
The Home Buyers’ Expo 2012 will offer special promotions,
such as low-interest rates and cheaper prices, for the purchase of housing
and condominium units.
The organizer expects around 80,000 visitors during the
four-day events. The Housing Finance Association has predicted that the real
estate sector figures for July are expected to have grown as well. It said
the first three months this year saw high housing sales as a result of the
government’s stimulus measures such as low-interest rates and soft loans for
flood-affected victims.
The Association has estimated that the housing loans will
increase in the second half this year, thanks to the government’s city train
projects which helps stimulate condominium sales. (NNT)
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Starwood Hotels & Resorts doubling footprint in China
Sheraton Macao Hotel will be
Starwood’s largest hotel globally.
Starwood Hotels & Resorts Worldwide, Inc. recently
announced that it had reached a historic milestone with 103 hotels open and
in operation and now another 100 signed hotel deals in the pipeline for
Greater China, Starwood’s second largest market outside of the United
States. The announcement was made as part of celebrations at the Sheraton
Shanghai Hongkou Hotel on the heels of Starwood’s Asia Pacific Investor Day.
“Our celebration of our more than 100 hotels in operation
and 100 hotels in the pipeline marks another significant milestone for
Starwood’s growth and development in China as we double our footprint in the
region,” said Vasant Prabhu, Vice Chairman and Chief Financial Officer of
Starwood Hotels & Resorts Worldwide, Inc. “Our success in China reflects our
first mover advantage, the strength of our brands and the entrusted
partnerships we have fostered with our developers, partners, and guests
since our first landmark debut with The Great Wall Sheraton Hotel in Beijing
in 1985.”
Starwood has already opened 11 hotels in China in 2012
and expects to open another 13 by year’s end.
“With more high-end hotels in China today than any of our
competitors, our long lead will be enhanced by the record number of new
hotels we have in our pipeline,” said Starwood’s President of Global
Development, Simon Turner. “China continues to present tremendous growth
opportunities for Starwood as we drive to introduce our valued, world class
brands into new markets that do not yet have a major international branded
hotel.”
Sheraton Hotels, in particular, will continue to play a
leading role in maintaining Starwood’s premier position in the region, as
its growth trajectory is on track to reach 90 hotels in Greater China by
2016. Driven by strong demand in second and third tier cities, Sheraton
Hotels is slated to open seven new properties across China, including
Changbaishan, Dalian, Huzhou, Hefei, Jiaozhou, Fuzhou and Macao by the end
of 2012.
In addition, the Sheraton brand will celebrate its 75th
anniversary with another distinguished landmark as the brand opens
Starwood’s largest hotel globally, Sheraton Macao Hotel, Cotai Central,
which will also become the largest hotel in Macao.
Located on Asia’s own bustling Las Vegas strip, Sheraton
Macao will open the first phase of its 3,863-room in September 2012 and be
fully open by the end of first quarter of 2013. Featuring a main ballroom
the size of over 11 basketball courts combined, the hotel will offer over
15,000 sq m of meeting space with access to a further 5,000 sq m within the
Cotai Central complex. Leisure facilities will include three restaurants,
poolside cafes and the world’s largest Sheraton Club. The opening will
further strengthen Starwood’s lead as China’s largest luxury and
upper-upscale international hotel group.
The Westin brand boasts a pipeline of 11 new hotels set
to join its existing portfolio of 16 award-winning properties, including The
Westin Bund Center Shanghai and The Westin Guangzhou.
Globally renowned Le M้ridien Hotels features 8 hotels in
Qingdao, Chongqing, Xiamen, Shanghai, Shimei Bay, Sheshan, Taipei and Hong
Kong, with an additional 6 hotels in the pipeline.
Industry innovator W Hotels will debut the first W hotel
in mainland China with W Guangzhou by the beginning of 2013. It is also
preparing to open another 4 hotels by 2017 in Macau, Beijing, Shanghai and
Changsha.
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Exchange Tower awarded Thailand’s first BCA Green Mark Gold Certificate
Exchange Tower, the Grade A office and retail development
at the Sukhumvit-Asoke-Ratchadapisek intersection, was recently awarded the
Building Construction Authority of Singapore’s Green Mark Gold Certificate.
Exchange Tower, which is managed by CBRE, is the first building in Thailand
to receive a BCA Green Mark Gold Certification.
The BCA Green Mark Scheme was launched in January 2005 as
an initiative to drive Singapore’s construction industry towards more
environment-friendly buildings. It is a benchmarking scheme which
incorporates internationally recognized best practices in environmental
design and performance.
The benefits of the BCA Green Mark include reductions in
water and energy consumption, a reduced environmental impact and an improved
indoor environmental quality for a more healthy and productive workplace,
while also providing a clear direction for continual improvements to be
made.
“It is a significant achievement to be Thailand’s first
office building to win Green Mark Gold Certification. Exchange Tower is now
97% leased,” said Nithipat Tongpun, Executive Director and head of Office
Services at CBRE Thailand, the sole leasing agent for the building.
“Tenants are now attaching a greater importance to the
environmental performance of office buildings; it is becoming an ever more
significant factor in determining their choice of building,” added Nithipat.
CBRE Research has shown that buildings with environmental
certification are performing better than non-certified buildings and that a
rental differential is starting to appear. This trend started in the USA,
Europe and Australia, but is now spreading rapidly to Asia.
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IDEO MOBI breaks ground
in Sukhumvit & Sathorn
Ananda Development Pcl broke ground on two of their new
IDEO MOBI projects in Bangkok last month. The structures, designed by the
Westcon Co., Ltd. are the latest developments that fall under the company’s
unique ‘Living out of the box’ concept.
Chanond Ruangkritya,
President and CEO of Ananda Development Pcl., lays the foundation stone to
open IDEO MOBI Sathorn project, Friday, July 13.
IDEO MOBI Sukhumvit is located on an over 6-rai plot of
land and the company says it is the “grandest project on Sukhumvit Road”.
The development incorporates two towers; Tower A is a 23-story building with
449 units while Tower B is a 25-story building with 491 units. Of the 935
total units, 5 will be retail outlets.
Ananda’s other latest project, the IDEO MOBI Sathorn, is
located on over 2-rai of land on Krungthonburi Road and only 80 meters from
the BTS Thonburi Station. It is a 530-unit project with one 31-storey
building, of which 1 unit will be a Max Valu retail outlet to serve its
residents around the clock. The development is just a 2 minute travel
distance to Bangkok’s CBD and the MRT connection at Saladaeng.
Leading colleges, fashion and shopping centers, and
international standard hospitals and medical centers are all in the close
vicinity of both projects which the developers believe will add
significantly to their appeal.
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Pattaya Property
Outlook 2012-2013
Real Estate Seminar - 8 August 2012 - Eastern Grand Palace Hotel, Soi Khaotalo, Pattaya
REBA-ES and the Agency for Real Estate Affairs proudly
present a Seminar on the recently surveyed Pattaya property market.
The survey was conducted by Dr. Sophon Pornchokchai, PhD,
D.FIABCI, CRS, MRICS.
Gain a better understanding of the up-to-date market
position as recently surveyed for investment purposes with:
An in-depth analysis of residential properties including
single houses, duplexes, townhouses, shophouses, condominiums and land plots
by eight price ranges.
A most comprehensive survey covering 650 projects;
whereas, 250 projects are in Pattaya City, 330 projects are in another six
urban centres in Chonburi and 70 projects are in another three urban centres
in Rayong.
The most updated survey for Pattaya (July 2012) and other
local urban areas (March 2012).
Reported by Dr. Sopon Pornchokchai, PhD D.FIABCI CRS
MRICS, president, Agency for Real Estate Affairs (www. area.co.th) which is
the first and largest real estate information, valuation and research
conducted in Thailand since 1994, together with a panel discussion by
renowned major real estate professionals with expertise on the Pattaya
market.
The Program
12:00 Registration
13:00 Opening speech and keynote address by Mayor
Itthiphol Kunplome
Introduction by the president of the Real Estate Brokers
Association Pattaya (REBA Eastern Seaboard)
13:45 Presentation: Major Findings, Pattaya Property
Markets and Outlook, Dr. Sopon Pornchokchai, PhD D.FIABCI CRS MRICS
15:00 Afternoon Refreshment
15:20 Panel Discussion: Pattaya Property Outlook,
2012-2013
(Panel participants yet to be confirmed - a developer, a
broker and a government officer)
Introduction by: Mrs. May Watson, president, REBA Eastern
Seaboard
17:00 End of the session.
The Organizers
Real Estate Broker Association Eastern Seaboard:
www.rebaes. com is an association of brokers and agents in the Eastern
Seaboard region of Thailand. It was founded in 2006 with individual and
corporate members. Within the association, there are also sub-committees to
help uplift the professional practices of members to always have better
professional services to consumers.
Agency for Real Estate Affairs www.area.co.th is a
property consultant firm as well as real estate information, research and
valuation centre in Thailand. It specializes in real estate consultancy
services while refraining from real estate brokerage and self-interest
property developments to avert a potential conflict of interest; thereby
insures the integrity of our valuations and research works.
The Research
Team Leader
Dr. Sopon Pornchokchai PhD D.FIABCI CRS MRICS, is a
research team leader for Pattaya and the Eastern Seaboard as well as the
speaker to present the research findings. He earned a PhD in land and
housing from the Asian Institute of Technology, a Certificate in Housing
from Katholieke Universiet Leuven and a Certificate in Valuation from LRTI
Lincoln Institute of Land Policy. He has been conducting market research in
Pattaya and Nationwide for over 20 years.
Fee
Participation: 850 baht per person including handouts and
refreshment.
Comprehensive research paper: 4,000 baht per copy.
Fees can be paid to any REBA-ES member or direct to the
Agency for Real Estate Affairs
http://www.trebs.ac.th/English/SUMMARY/seminar_pattaya.php
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Porchland Group has big plans for Pattaya
Rapidly becoming one of Pattaya’s most active property
developers in the past couple of years, the Porchland Group has recently
unveiled plans for its unique Feelture condominium in Na Jomtien. Pattaya
Mail Real Estate monthly recently tracked down the company’s General
Manager, Chitsanucha Phakdeesaneha, to ask him about the developer’s latest
projects and its plans for future expansion in Pattaya.
Porchland General Manager,
Chitsanucha Phakdeesaneha.
PM: Before becoming Porchland Group Pattaya, where
did you start your business?
CP: Before Porchland Group started in Pattaya, we
were primarily building contractors who undertook a lot of work for other
developers’ projects in the city; whether it was Hyde Park, Park Lane, The
View, Atlantis and many more. After gaining extensive experience doing
construction for other companies, plus the fact that we had started to
purchase our own land plots, it was a natural progression for us to redirect
our efforts into real estate development.
PM: What were the company’s first projects in the
city?
We started by building a 22-unit commercial property,
which proved to be a hit, and we continued that momentum by purchasing more
land and aggressively targeting the residential market, which led to more
success in the form of projects such as Porchland 2 and 3. The Blue
Residence was also another very successful endeavor and we were able to
close sales of the whole 300 units in just over two months.
From the positive response we received for The Blue
Residence, we progressed by launching The Time, located behind Kasetsart
University, Sriracha, followed by the La Santir project, located at
Chaiyapruek 5 in Jomtien, the land for which we bought while working on
Porchland 2.
PM: What do you feel Porchland Group offers to
customers that has made the company so successful?
CP: Porchland’s success in its many developments can
be put down to quality of the construction and materials used and also the
uniqueness we offer in terms of interior designs, which are different from
other projects on the market. We try to combine beauty with functionality,
which is more than you would find in general offered by other developers at
the same price-point.
When we were working on Porchland 2 we just constructed
empty shells, with the customers able to obtain built-in packages later, but
for The Blue Residence we provided all the built-in fixtures and fittings
and almost everything required in a room.
The response from out buyers was extremely positive. They
were able to move in without having to add anything more; whether it be
kitchen appliances, furniture, refrigerators, televisions, curtains etc.
This is one other important unique feature of Porchland.
Another important element in our success is the selling
price. Apart from the other aforementioned benefits, we try to offer out
projects at a price lower than market standard. We are able to achieve this
by not focusing on and investing a large part of our capital on prime
locations. With this cost saving we are able to offer units in our
developments at extremely attractive prices.
An artist’s impression shows
the completed La Santir development on Soi Chaiyapruek, Jomtien.
PM: When the company was still working as a
contractor, did it have its own design team?
CP: When we were contractors we worked with a few
design teams, hired by the project developers, and as we had to work with
designers hand in hand so to speak, we got to know each other quite well and
we have worked with a few of them since on our own developments. Our first,
second and third projects were by designers from Bangkok, but all subsequent
developments have been designed by teams here in Pattaya.
PM: La Santir is another successful development of
yours. Can you tell us a bit more about it and any other new projects?
CP: Yes, La Santir has proved to be very successful
since its launch at the end of last year. We have sold more than 400 rooms
from total of just over 500 and we are very happy about the way it has been
received by buyers.
The Feelture show suite
highlights the attractive all-inclusive furniture packages offered by
Porchland.
Our latest project is the Feelture condominium (Porchland
6) which has been launched for less than a month but has already sold over
130 units from the total 301. So we expect to have more than half the units
sold in a little less than 2 months from launch.
Both La Santir and Feelture were released onto the market
within a short timeframe of each other and with similar prices and concepts.
The difference is the design of each project.
PM: How does the company decide on locations for
its developments?
CP: Honestly, many people would look at the areas we
build and think, ‘why are they building there?’ but we believe that the
locations we choose are ones for the future. For example, the La Santir
project is located where Jomtien Second Road ends. When it’s completed this
will become a more developed and desired area, and it’s still less than 1km
from Jomtien Beach.
Another project, The Feelture, is located around Na
Jomtien Soi 4, which currently still resembles a bit of a jungle, i.e. not
very developed, but when the link road to Sukhumvit that will pass through
here is finished, this location will prosper rapidly.
PM: What does Porchland have on the drawing board
for the near future?
After the Feelture condominium there are many other
projects waiting for us, but the one that will be launched soon is The
Crystal, located at the seaside in Bang Saray. This development will offer
the feeling of a private beach, with no lounge chairs or umbrellas to
destroy the view.
The majority of our past projects were low-rises, but
with La Santir and The Crystal we are aiming to build higher. In the market
place generally, the low rises, e.g. the eight-story condominiums, are
easier to sell. The construction period is also less and they are easier to
manage. Thus, we have focused more on low rises up to now.
We would maybe look at the luxury end of the market for
future projects; possibly some boutique developments on smaller plots of
land in prime areas where we can give even greater attention to customers’
needs.
PM: Porchland seem to offer great deals on their
developments, what are the smallest sized units that you offer?
Currently the smallest units we offer are the studios at
La Santir which are approx. 26sqm, but on average our standard spacing for
studios is between 33-38sqm across the board.
We are finding that the size of units we offer is in line
with customer requirements and many of the buyers in earlier Porchland
projects have returned to buy units in our recently announced developments.
Our low entry price points and inclusive fixtures and fittings package is
proving to be very attractive to investors.
PM: Apart from the Pattaya property market, are
you aiming to develop elsewhere?
We are currently looking at the Rayong area as this has a
smaller real estate market and what the city has, regarding designs and
decoration etc., is not as beautiful as it could be. In addition, the
selling prices are pretty high and the demand is there as the city is
surrounded by large industries with workers requiring good places to live.
PM: And finally, what are your visions for Pattaya
in the next 5 years?
In reality Pattaya is already quite far along the road of
property development and in another five years the city will be even more
so. Demand is set to increase as more and more people move to the city,
either to work here or possibly to escape the fear of future flood disaster
in other areas, including Bangkok.
Another major development would be the high speed train
link from Suvarnabumi Airport to Pattaya, which is something the city mayor
is pushing for. We also expect to see a gradual increase in the quality of
infrastructure, utilities and public services in Pattaya and we believe,
when you put all this together, the city will rapidly grow economically.
For more information on Porchland Group projects, go to
www.porchland.com.
(By Phasakorn Channgam/Pattaya Mail)
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‘We don’t build bad houses,’ Sanmanee CEO says
For house shoppers, quality, construction, and a
builder’s responsiveness are important factors in deciding where to buy.
Montree Sanwiangchan, CEO of
Baan Sanmanee.
Montree Sanwiangchan, CEO of Baan Sanmanee in Bang Saray,
says the villages his company builds and manages provide all that and
particularly focus on quality and details to satisfy their customers. It’s
one reason why the company’s motto is “We Don’t Sell Bad Houses!”
The Sanmanee chief recently sat down with the Pattaya
Mail to discuss the company and its products.
“When I was 20 and working as an employee in Sino-Thai
Engineering & Construction Co., I quit my job to start my own contracting
business,’ said Mr. Sanwiangchan. “I still made deals with Sino-Thai, but I
had reached a point where contract construction thrived but it still had not
satisfied me personally because when I took contract jobs, I had to follow
others’ designs. I could not do as I wanted and I understood customers’
requirements, some of which I could not fulfill at that time.
“I wanted to fill this void, which involved building
houses according to my designs, designs which had been specified by
customers when I was a contractor, designs based on actual needs of
customers,” added Sanwiangchan. “Therefore, I decided myself to start a
village under the name ‘Sanmanee’ in 2008, which was when I really entered
the real estate business. What I got in return was pride when customers were
satisfied with Baan Sanmanee since all the minor details of the project were
what customers really wanted,” said the CEO.
The first phase of Baan Sanmanee was launched in 2008 in
Panthong, Chonburi, while the second and third phases came the following
year around the Amata Nakorn industrial estate. In 2011 the company launched
the fourth and fifth phases and construction on the sixth was started this
year.
“The launch of Sanmanee phase 1 in 2008, in Panthong, did
not initially do very well as it was launched during the time when the
economy was suffering from the global crisis, however sales started to
pick-up and we ended up selling the entire project faster than we expected,”
said Sanwiangchan.
On the back of this success, phase 2 and 3 followed
shortly after with similar sales success and phase 5 was closed surprisingly
fast within six months last year, he added.
“We have the slogan about not selling bad house, that
even children can remember,” said Mr. Sanwiangchan. “It’s something that
seems to have struck a chord with the real estate industry as well and our
customers are already familiar with our name when they come to view our
projects.”
With 4 existing projects in the Amatanakhorn, Chonburi
region, and another currently under construction, the company decided to
recently diversify its portfolio by launching Phase 4 in a tourism area,
namely Bang Saray.
“Initially we had a problem getting ourselves noticed as
out name and slogan was not as well known in the Sattahip/Rayong area.
However, once customers came to view our houses they would return two or
three times more before deciding to buy after being impressed with the
quality of our designs and construction,” said the Sanmanee CEO.
“We were lucky with the project location as we were able
to acquire the land at a good price allowing us the advantage of selling the
houses at competitive prices,” he added.
The Bang Saray development is modeled on the company’s
successful pilot project in Panthong but with modifications to reflect the
lifestyle of a tourism city. Improvements include adding Jacuzzi tubs in the
bathrooms, expanding the living rooms and using materials such as low mass
bricks to reduce noise from the outside.
The village roads are nine meters wide to give the
project a non-congested look and the communal park includes a clubhouse and
swimming pool. All the facilities will be built during the initial
construction phase so that existing residents don’t have to wait until the
project is complete before they can use them.
Mr. Sanwiangchan was asked what he considered to be the
most important factor in making Sanmanee the market brand it is today.
“Quality and attention to detail in construction,”
replied the company CEO without pause. “In addition, if we go back four
years, the words ‘house with land’ was not everybody’s realistic dream;
especially people with lower incomes since it is perceived that these houses
would be very expensive. But Sanmanee is selling houses starting from just
over a million baht with built-in furniture, which is still quite a surprise
to our customers. Sanmenee has done it and this is one of the elements why
we are such a household name in the Chonburi area.”
Sanmanee hopes to launch phases 6 & 7 in September this
year, both of which will be located around the Amatanakhorn industrial
estate. In the future, the company plans to launch a project over a hundred
rai in Phanomsarakham, Chacherngsao, surrounded by a lake, and the houses
will be built as if they were on their own personal island. The target
market will mainly be Bangkok citizens looking for a second home outside the
capital. The developer also has one eye on the condominium market in
Pattaya, Chonburi and Prachuap Kirikhan.
“Currently, we are in the research process of
possibilities in condo construction including studying the market in each
area,” said Sanwiangchan.
And finally, where did the name ‘Sanmanee’ originally
come from?
“Well, ‘San’ is from my surname,” said Mr. Sanwiangchan.
“As for the ‘Ma’ is from ‘Montree,’ my name. For ‘Na’ it’s from my
daughter’s name and ‘Ee’ is from my mother’s name. Put together you get
‘Sanmanee.’ It is a word that brings my family together perfectly even the
house models’ names are all from names of members of my family. When we
work, we enjoy, we feel like we are with our family at all times.”
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Misplaced hopes for longer land leases:
the JFCC is heading down the wrong road
It is well known that ownership of land by foreigners in
Thailand is restricted. Thus, a long-term leasehold is often the best option
for a foreigner to invest in real estate. However, the duration of leasehold
in Thailand is limited to thirty years by Section 540 of the Civil and
Commercial Code (the “CCC”). It is generally agreed that thirty years is
rather short when one is making an investment of any significance and in
order to “overcome” this limitation a typical long-term lease agreement in
Thailand will provide for two additional successive periods of 30 years
each; this despite the fact that current Thai law provides for only one such
renewal. However, we will not discuss the issue of a second renewal here.
Due to such restrictions, for many years now, developers
and consumers have been calling for an extension of the maximum lease term.
However, extending the current maximum lease term and/or renewal periods
under Section 540 of the CCC would require a change of law and, therefore,
parliamentary approval. However, for various reasons, achieving more
favourable long-term lease conditions at this level of the legislative
process has been infeasible.
Thus, quite understandably and admirably, the Joint
Foreign Chambers of Commerce (the “JFCC”) has been working on a proposal to
extend the maximum lease term. In March 2010 the JFCC’s Property Committee
finalized and submitted a white paper to the Thai government entitled
“Proposal for Leasehold Extension” (the “JFCC Proposal”). The JFCC Proposal
articulates many well founded reasons why the legally enforceable lease-term
in Thailand should be longer than it currently is.
The authors of this article agree with the JFCC’s
position and reasoning in such regard. The JFCC Proposal then states that
its objective is to “identify an appropriate and feasible solution to the
legal disadvantages that are hindering the growth and development of
Thailand’s property market ... the key solution would be the increase of the
legal leasehold term,” (JFCC Proposal, page 5). We agree.
The whitepaper’s introduction then recognizes that
changing the law itself would be difficult and so it is asserted that the
JFCC’s Proposal will “focus instead on a fast-track solution that is
available under existing law.” (JFCC Proposal, page 5). We also agree that
such an easy “solution” would be preferable if it existed, but unfortunately
it does not.
It is our position here that, however well intended, the
JFCC Proposal fails to understand the relevant law and that its core
proposals are not workable under existing law. The JFCC should withdraw the
JFCC Proposal and focus its efforts in this regard instead on advocating for
a change to Section 540 of the CCC such that it would allow for a longer
maximum lease term.
The first “more achievable and sensible solution”
according to the JFCC’s Proposal would be “the revision of the Land
Department regulations to ensure that two lease agreements can be registered
and enforced in accordance with the CCC, on a back-to-back basis, allowing
for a clear, definite 60-year term.” (JFCC Proposal, page 5).
Clearly the JFCC recognizes that the CCC currently limits
the maximum lease term to thirty years. However, the JFCC also appears to
believe that a lease is enforceable merely through registration. In fact,
the JFCC bemoans: “with the current practice of Land Officers, in most
cases, [a] second lease agreement can only be registered [and therefore]
binding only after the first lease term has ended . . . [however] the second
lease term is not binding until it is registered ...” (JFCC Proposal, page
8). “The regulation should state clearly that the Land Department will
register and enforce back-to-back leases of 30 years each, in accordance
with the CCC, allowing the 60-year consecutive lease term.” (JFCC Proposal,
page 13).
To the unfortunate detriment of all of those who would
like to see a reliable longer lease term here in Thailand, the JFCC’s
efforts are based on fundamental misunderstandings of the relevant law, and
therefore are misguided. Obviously the Land Department does not “enforce”
land leases. The Land Department is charged with the duty, among others, to
register land leases. However, since it bears directly on their white
paper’s core recommendation to the Thai government, the more profound of the
JFCC’s misunderstandings has to do with the legal effect of a lease
registration.
The registration of a land lease and its legal effect
seems to be one of the common mysteries in Thai real estate law. The common
misunderstanding is that the “registration” somehow makes all elements of a
lease contract enforceable and unassailable. The registration of the lease
is, however, merely an administrative act.
To the extent that the registration does trigger any
legal rights between contract parties, e.g. a lessor and lessee, such rights
come from the law itself and not from the administrative act of
registration. For example, it is true that under Section 538 of the CCC any
lease over three years must be registered or it will not be enforceable
beyond three years. Obviously, this is why parties register long-term
leases. Nonetheless, registration itself triggers no further legal relations
or obligations between the lessor and lessee than those outlined in such
Section 538 of the CCC.
The only legal effect of lease registration beyond
Section 538 is that it makes the lease agreement a matter of public record
but it does not make an otherwise unenforceable lease, enforceable. In other
words, simultaneous registration of a second 30 year lease term does not
make that second term automatically enforceable; thinking it would, is a
fundamental misconception of the current law.
Current Thai law does not provide for an “extension” of a
lease term; rather and only it provides for a “renewal”. For example, if
during the first 30 year land lease term, the lessor changes (i.e. the land
ownership transfers to a new owner for whatever reason) and such initial
term ends, the new lessor would be under no obligation to enter into a new
lease with the lessee. Such would be the case even if the original lessor
had already “registered” a renewal term.
Thus, the relevant legal question is: “who is the owner
of the land at the beginning of the new lease term?” Only the owner at the
time of renewal, at the beginning of the new term, can act as the lessor and
at that time enter into a lease agreement with the lessee. Therefore, merely
registering the second 30 year renewal term would not itself make that
renewal term enforceable.
Apparently the source of the JFCC’s confusion is also as
a result of its misunderstanding of Section 569 of the CCC. “Based on
Section 569 of the CCC, only the contractual rights and obligations under an
immovable property lease agreement are transferred and binding on the
transferee to the land title. Meanwhile, the ‘renewal option’ in the
agreement is only considered as a ‘promise’ made by and between the lessor
to the lessee, and will not be transferred to the successor/transferee,
unless such transferee has accepted to be bound by such promise ...
regardless as to whether the lease agreement has specifically stipulated for
the renewal option to also be binding on the successor of the lessor.” (JFCC
Proposal, page 8).
It is true under Section 569 of the CCC if land is leased
for e.g. thirty years and the ownership changes during that thirty years,
the new lessor is bound by that lease. It is however also true that the same
said new land owner would not be bound by an option/promise to renew the
said lease made by the prior land owner. The reason is that the
option/promise is not a part of the first thirty year lease by which the new
land owner is bound under Section 569. Therefore, if the promise to renew is
not a part of the first lease and not binding on the new land owner then
most certainly neither is a second “new” lease made by the first land owner.
Any such second lease is definitely no more a part of the first lease than
is an option to renew the first lease.
It can be concluded that: (i) Section 569 of the CCC only
binds a new land owner to a lease that currently exists; and (ii) a second
lease to be renewed does not at that point legally exist and the mere act of
registration does not make it a currently existing lease.
The second core idea of the JFCC Proposal is to extend
the applicability of the Lease of Immovable Property for Commercial and
Industrial Purposes Act (1999) (the “Act”). “The scope of this Act is
limited. Our recommendation is that it should extend to ‘residential
purposes’.” (JFCC Proposal, page 13).
Apparently the JFCC focuses on the Act because it does
provide for a maximum lease term of fifty years. However, Section 3 of the
Act and the legislative comments to the Act make it very clear that the only
permissible purposes of any lease under the Act are commercial or
industrial. It is, therefore, not permissible for someone to use the Act for
a fifty year lease for residential or recreational purposes.
Thus, “extending” the application of the Act to
residential activities would require amending a law, i.e. the Act, itself.
Of course that means that this proposal is no more attractive than amending
the CCC itself. And in fact, considering that the Act is the “Lease of
Immovable Property for Commercial and Industrial Purposes Act”, amending the
CCC instead must certainly be more reasonable and likely.
Thus, what is needed are not legally ineffective
administrative acts or a change to a law intended for commercial and
industrial purposes as currently proposed by the JFCC. The only way forward
is an amendment to the relevant law i.e. to Section 540 of the CCC itself,
to provide for a lease term of more than 30 years. Pushing for such a
measure would undoubtedly make JFCC’s efforts more efficient and would
perhaps provide a real opportunity to hope for all the benefits that would
accrue to Thailand and those investing here by way of a longer maximum lease
term.
Note: Article written by Duensing Kippen Tax & Law, a
multi-service boutique law firm specializing in property and
corporate/commercial matters, as well as arbitration proceedings. For more
information please visit them at: www.duensingkippen.com.
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Thailand short of
construction workers after Myanmar opens its country
The Thai Real Estate Association (TREA) has revealed that
since Myanmar began to start showing signs of opening up its country for
outside investment, many Burmese have returned to their home country, which
in turn has caused a construction worker shortage in Thailand.
President of the TREA, Kittiphon Pramote Na Ayutthaya,
stated that the real estate sector is facing a severe labor shortage,
causing delays in several housing construction plans. He said many Burmese
construction workers who returned to their home country during the flood
devastation in 2011 never came back because they have found more job
opportunities in Myanmar, as the nation is opening up for business.
He added if Myanmar fully opens up its country, Thailand
would face a huge labor problem.
Currently, many entrepreneurs have already been affected
by the government’s plan to increase the minimum wage to 300 baht in April.
Production costs are expected to rise. Kittiphon said they will also have to
shoulder the increasing fuel prices. He concluded that all of these factors
have contributed to the rise in real estate prices, which so far have gone
up by 5-10%.
The association president does not believe that the
flooding will happen again this year, which will give buyers more confidence
in buying houses. He expects that the overall real estate sector will see a
5-10% growth in 2012. (NNT)
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New hotels arise amid ruins in Haitian capital
Building work continues on
the Royal Oasis hotel in Port-au-Prince, Haiti. (Photo/OasisHaiti.com)
Glimmers of hope are coming to the devastated Haitian
capital Port-au-Prince and its surrounding cities, as the concrete Royal
Oasis hotel rises over a metropolitan area still filled with
displaced-persons camps housing hundreds of thousands. Signs of Haiti’s
comeback can also be seen in the 105-room Best Western hotel being built
within blocks of shanty-covered hillsides.
At least seven hotels are under construction or are
in the planning stage in the capital and its surrounding areas, raising
hopes that thousands of investors will soon fill their air-conditioned
rooms looking to build factories and tourist infrastructure that will
help Haiti bounce back from a 2010 earthquake that officials say claimed
300,000 lives. Some damaged hotels are undergoing renovations.
Together, the projects add up to well over $100
million in new investment and will generate several thousand jobs in a
nation still struggling to emerge from years of natural disasters and
political turmoil.
In fact, the new hotels are the first significant
private-sector construction in Port-au-Prince in the two years since the
quake.
“Cautious optimism and deep skepticism” is how
economist Claude Beauboeuf describes Haiti’s hotel boom. For people to
fill the hotels, he said, it’s important that President Michel Martelly
address the problems facing his government, which include an illegal
force of armed men openly roaming the country, a string of mysterious
police killings and strife with the opposition-controlled Parliament. He
also needs a prime minister to replace the outgoing one who resigned
after clashing with the president over priorities.
“If he doesn’t address these things, investors will
withdraw,” Beauboeuf said, citing Club Med and the Holiday Inn as
earlier examples of franchises that left Haiti because of political
instability.
The planned hotels in the capital are not aimed at
tourists, who avoid gritty Port-au-Prince. Instead, developers are
targeting the contractors, foreign aid workers and diplomats for whom
finding a room can be a challenge. The Clinton Bush Haiti Fund, led by
the previous two U.S. presidents, identified new business-class hotels
as key to attracting foreign investors looking for opportunities in
Haiti. Similarly, President Martelly has said he wants to make Haiti
less dependent on foreign aid and friendlier to outside investments.
One of the biggest foreign investments in Haiti is an
industrial park under construction in the north that’s scheduled to
begin garment production in September. The giant $300 million Caracol
industrial park will be run by South Korean manufacturer Sae-A Trading
Co. Ltd. and is expected to bring an initial 20,000 jobs to the remote
area. And there are smaller efforts to help Haiti improve production so
farmers can better export mangoes, cacao and coffee.
The Haitian capital, which includes several
overlapping cities such as Petionville, lost nearly 850 hotel rooms in
the quake, according to Tourism Minister Stephanie B. Villedrouin. For
more than a year after the disaster, it was often impossible to find a
room without months of advance notice.
Villedrouin said all of those hotel rooms will have
been replaced by the end of the year.
Several hotel projects are also under way outside the
capital, including in the sleepy, picturesque fishing village of Jacmel
on the southern coast, and are aimed at what Villedrouin and other
government officials hope will become a growing market for tourists
willing to overlook the capital and its troubles.
“Haiti is not Port-au-Prince,” the tourism minister
said. “Haiti is not the earthquake.”
Even before the catastrophe, only a handful of hotels
met international standards of comfort, including the Hotel Montana, the
Hotel Villa Creole and the newer Karibe Hotel. These would often fill
with journalists, international observers and others during elections or
times of crisis, becoming hubs of activity in a city with little in the
way of entertainment and where few foreigners venture out at night.
The quake largely destroyed the Montana, though part
of it has since re-opened, and extensively damaged the Villa Creole,
which remained open after the disaster and is now being renovated. The
Karibe was largely unscathed.
Villedrouin said Port-au-Prince officially has a 60
percent occupancy rate but many of the hotels are too rustic for
international travelers. The better rooms in the city quickly fill up,
with huge demand for the relatively few places with better amenities.
“Right now there’s such demand that the market can
absorb several hotels,” said Alejandro Acevedo, an executive for
Marriott International, which is building a $45 million, 174-room hotel
in partnership with mobile phone company Digicel Group.
Acevedo said even he had to share a room with his
boss on a recent visit because of the dearth of hotel space.
“There’s nowhere to stay,” Acevedo said.
Other projects include the $15.7 million Best Western
in Petionville that’s due to open this summer. Also in Petionville is
the Royal Oasis, a 10-story building that will include an art gallery,
three restaurants, a commercial bank and high-end shops. Construction on
the Royal Oasis began before the earthquake and is expected to finish by
the end of the year.
The project received a $2 million equity investment
from the Clinton Bush Haiti Fund along with $275,000 from the Oasis
Foundation, a nonprofit group set up by the hotel, to train workers in
the hotel industry. It’ll be run by the Spanish firm Occidental Hotel &
Resorts.
“This is going to be one of the most palpable signs
of modernity emerging from the ashes of the earthquake,” Jerry Tardieu,
President and General Director of the Royal Oasis, said from the hotel’s
leafy courtyard amid the clang of construction.
The International Federation of Red Cross and Red
Crescent Societies is mulling building its own hotel on land it quietly
purchased for $10.5 million several months after the earthquake. The
money came from donations raised by national Red Cross agencies for
quake recovery, causing some to wonder if the money would be better used
to house displaced people rather than aid workers.
The Red Cross has said little about the project since
it was reported in recent weeks, saying only that it is under
consideration.
Many people in Haiti welcome the new hotels just as
they do any new investments that will bring jobs to a country where more
than half the adult population is unemployed or underemployed and
survive on less than $2 a day. But some say Haiti should first care for
the 500,000 people still living in makeshift camps.
“It’s nice to build hotels to bring tourists but
first you need to think of your citizens,” said Ben Etienne, a
36-year-old resident of a hilly encampment in Peguyville that fills with
mud during Haiti’s rainy season. “I don’t have a problem if the tourists
come but the money needs to come into the country for the people.”
Tardieu said the new hotels will help more people get
out of the camps by giving them jobs to pay for rent on homes being
rehabilitated by government and nonprofit organizations.
He noted that 600 people have been employed in the
Royal Oasis’ construction and that another 250 to 300 full-time jobs
will be created after it opens.
“There need to be Haitian women and men who dare to
invest,” he said, “who dare to have a vision of modernity for their
country and do not cave in to the cliche that Haiti is only a country
where efforts have to be geared toward short-term relief humanitarian
work.”
(By Trenton Daniel)
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Kvik Danish kitchens
expands in Thailand
Kvik’s showroom in
Bangkok.
Renowned Danish kitchen brand Kvik plans to expand
the number of showrooms for its striking kitchen designs and new
innovations such as ‘The Sociable Kitchen’ and flexible storage
solutions.
Since launching its first two showrooms in Hua Hin
and Bangkok in January 2011, Kvik has developed a strong presence in
Thailand with its high quality, innovative kitchens at affordable
prices. Both Kvik showrooms were met with favourable success, indicating
that Thai customers are clearly attracted to the company’s philosophy of
smartly designed kitchens. Kvik will be launching three more showrooms
later this year.
According to CEO Carsten B. Andersen, “Ideal
locations for this expansion for the Kvik brand are Pattaya, Chiang Mai
and Phuket, and Kvik is actively seeking partners to assist us in this
expansion plan.”
Mr. Andersen also regards Thailand—which the company
sees as the ‘door to the East’—as being a launch pad for further
expansion into Southeast Asia.
“Kvik’s strategy of launching its Southeast Asia
showrooms in Thailand is due to the strong growth of the Thai economy
and the understanding that the kitchen is playing a more central role in
the modern Thai home,” Andersen said, adding that “Kvik’s designers
understand that the role of the kitchen has evolved in the modern home
and the passion the Thai’s possess for cooking, eating, and sharing
their meals, all leading to the kitchen becoming more of a social hub.
Our designers are in tune to these trends in kitchen design and include
innovative design features into all our products to meet these ‘sociable
kitchen’ demands.”
‘The Sociable Kitchen’ is Kvik’s trademark, and a key
design feature. The philosophy behind it, introduced over a decade ago,
is simple: a large room furnished as a kitchen, with multiple functions.
The centerpiece of the home, its defining feature is the large work
island, around which everyone can gather to share in the joys of food
preparation and eating. Kvik kitchens also offer exceptional
flexibility, with extra-large cabinets that can be customized to meet
one’s specific requirements.
Kvik is part of the Swedish Ballingsl๖v Int. AB
Group, one of the leading companies for kitchens and bathrooms in
Scandinavia and the United Kingdom. There are currently more than 124
Kvik stores in Denmark, Sweden, Norway, Finland, the Netherlands,
Belgium, Spain, The Faroe Islands and Thailand.
To find out more about Kvik Thailand, visit
www.kvik.co.th.
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