Thu, January 20, 2022

property

HK investment firm spends Bt2.3 billion to buy 300 units in Proud Residences' Park 24


HONG KONG-BASED Fulcrum Capital is investing Bt2.3 billion to purchase 306 units of the Park 24 condominium project from Proud Residences, in a move that it targets will generate an annual return of at least 30 per cent, managing director Frank Leung said

 

"Thailand is the first country in Asean in which we are expanding our investment, after seeing business opportunity especially for residential projects, for which prices are still lower when compared with other Asian markets like Hong Kong, Singapore and China," he said.

Fulcrum Capital was established in 2009 to manage a private real-estate investment fund worth US$500 million (Bt18.16 billion).

The company has investments worth 300 million (Bt16.5 billion) in residential projects in the United Kingdom that together comprise more than 1,000 units.

Its UK investments generate a return of at least 30 per cent a year.

Thailand will be its investment hub for real-estate business in Asean, because the Kingdom is investing in infrastructure projects and is also set to be a gateway for foreign investors to expand their investment in other Asean countries, said Leung.

Chinese investors and tourists are also interested in expanding their investment in Thailand, he said, adding that this presented a business opportunity for Fulcrum Capital to invest in property, and especially in residential projects, here.

"If we see other [high-potential] residential projects, especially in Bangkok, we will expand our investment further, because we believe residential prices in Bangkok are still lower than elsewhere in Asia – and they also have the potential to increase when a project is situated at a prime location like Park 24, which is situated at Sukhumvit 24, in the central business district," he explained.

Former deputy prime minister Suwat Liptapanlop, who is a major shareholder of Proud Residences, said after yesterday’s investment contract-signing ceremony between Proud Residences and Fulcrum Capital that it was good news for the Kingdom when foreign investors had the confidence to expand their investment in the country.

Moreover, the Asean Economic Community (AEC), which comes into effect at the end of this year, will drive Thailand to become a regional investment hub, he said.

Proud Residences has already achieved Park 24 condominium sales worth Bt9.98 billion, or more than 60 per cent of the 2,073-unit project’s value of Bt16.5 billion. The project, which is undergoing construction, is expected to be completed in 2018, said Proud Residences chief executive officer Thongchai Busrapan.

"This deal shows that demand to buy condominiums in the central business district of Bangkok is still strong not only from domestic investors, but also from foreign investors who see business opportunity in Thailand after the AEC becomes effective because of its location as a gateway for foreign interests to expand their investment in Asean," said the CEO.

Published : October 01, 2015

By : SOMLUCK SRIMALEE THE NATION