BTS Group unit joins Dubai partner on Bt5-billion island resort project

U City signed letter of intent (LOI) with Dubai-based master developer Nakheel Group to develop the resort.
 “We expect that we will be able to finalise the investment and joint venture details of the deal within two months,” BTS Group Holdings Plc’s chairman Keeree Kanjanapas said in an interview yesterday.
U City chief executive officer Piyaporn Phanachet said the proposed deal comes under U City’s investment budget worth Bt85 billion for the domestic and overseas markets from this year till 2022.
 “This is challenge for us to expand our investment overseas after we took over a major stake in Vienna House last year,” Piyaporn said.
Keeree, who is also chairman of U City, said that investment in the Deira Island resort hotel would serve as a pilot project for its investment in Dubai. The company is also interested in making other investment in Dubai with its new partner, Nakheel Group, after the deal is completed. Meanwhile, the company has also invited Nakheel to invest in Thailand, for projects that may interest the Dubai company, Keeree said.
Keeree said that the group has continued to expand its investment at home and abroad in line with the business opportunities that arise.
For BTS Group Holdings, the company also is keen in expand its investment in the country’s infrastructure projects, such as for rail systems including high-speed services, and in the Eastern Economic Corridor (EEC).
“We are confident the country’s economy keep growing and require more investment for the development of infrastructure to drive the economy forward over the long term,” Keeree said.
Nakheel chairman Ali Rashid Lootah said the company decided to singed LOI with U City Plc and Vienna House when the company saw a business opportunity to develop four- and three-star hotels in Dubai. This is part of the company’s efforts to boost tourism in Dubai, with 20 million arrivals expected in 2020, rising from 16 million last year:
“We want to expand our tourism focus from the luxury to the middle market and develop the four- and three-stars hotels on Deira Island. Vienna House chain is the best choice for us,” Lootah said after a press conference yesterday.
He added that Nakheel Group is also interested to invest to Thailand in the future, following the collaboration with U City Plc on the beachfront resort on Deira Island.
Deira Island is one of man-made islands in Dubai that has been developed by Nakheel Group with an investment budget value of over than Bt40 billion. The project will combine hotel, retail, residential, offices and other operations.
Nakheel is largest property developer 
 in Dubai. The company’s developments include Palm Jumeirah, The World, Deira Islands, Jumeirah Islands, Jumeirah Village, Jumeirah Park, Jumeirah Heights, The Gardens, Discovery Gardens, Al Furjan, Warsan Village, Dragon City, International City, Jebel Ali Gardens and Nad Al Sheba. Together, these span more than 15,000 hectares and provide homes for over 270,000 people. Nakheel has around 25,000 residential units under construction or in the pipeline.