Pace announces closing of investment in MahaNakhon development

The funds were managed by affiliates of Apollo Global Management (together with its consolidated subsidiaries), one of the world’s largest alternative investment management firms, and Goldman Sachs, a global investment bank. 
The investors will hold 49 per cent in The Bangkok Edition Hotel and MahaNakhon Cube, which is the retail component of the MahaNakhon development and the tallest observation deck and rooftop bar in Thailand.
Funds managed by affiliates of Apollo have invested about Bt5.9 billion for a 34-per-cent stake, and Goldman Sachs has invested Bt2.5 billion for a 15-per-cent stake. The capital increase in Pace’s two subsidiaries has already been registered.
Sorapoj Techakraisri, chief executive of Pace, said: “Pace is extremely excited with this investment, which demonstrates the confidence that two pre-eminent global investors have in MahaNakhon. 
“The investment will enable Pace to fulfil its vision in this world-class development as well as strengthen its equity position, greatly reduce the company’s debt-to-equity ratio and enable Pace to expand its iconic Dean & DeLuca business throughout the world”.
Philip Mintz, head of Apollo’s real-estate business in Asia, said: “We believe that MahaNakhon is one of the most impressive skyscrapers in all of Asia. We are incredibly pleased with the quality of the development and, as importantly, with the quality of the Pace management team.”
The MahaNakhon development is nearing completion and residents of The Ritz Carlton Residences in Bangkok will begin occupancy in April. The Cube is fully leased and the Edition Hotel, Sky Observation Deck and Experience, and rooftop bar will be ready for full operation late this year. 
Currently, Pace has a total of five residential properties under development. They are The Ritz-Carlton Residences, Bangkok at MahaNakhon; MahaSamutr Villas; Nimit Langsuan; Naradhiwas-Rajanakarin; and a luxury-villa ski resort in Niseko, Japan. 
Combined project value is about Bt34 billion, with a backlog worth Bt17.5 billion, of which revenue will be recognised from the current quarter onwards.