Bt6.5-billion mixed-used project to rise in Pattaya

The project forms part of the company’s business expansion after launching its first condominium, the Bt2-billion Southpoint Pattaya, in the final quarter of this year, said chief executive officer Nigel Cor-nick, the former CEO of listed property firm Raimon Land.
Cornick and a friend took over Kingdom Property in 2000, but the company was inactive until he resigned from Raimon Land two years ago. Kingdom Property has Bt240 million of registered capital.
Southpoint Pattaya is currently undergoing an environmental impact assessment, and the company hopes to receive the necessary permit by December, after which the project will be open for presales.
The condominium, scheduled for completion in 2015, has received Bt680 million in project financing from Krung Thai Bank.
The loan is subject to presales of at least 50 per cent of the project value being achieved, which is normal for a commercial bank when |providing financing for development of a condominium project.
There is strong residential demand in Pattaya from both domestic and foreign buyers after the severe flooding that hit Bangkok and central Thailand last year, Cornick said.
“Many Japanese investors have moved their manufacturing plants to the Eastern Seaboard, while new Asian investors from Singapore, Hong Kong, China and elsewhere have also decided to expand their investment on the Eastern Seaboard rather than in suburban Bangkok. The challenge is for property firms to develop projects in Pattaya to support the strong residential demand,” he said.

RETAIL DEVELOPMENT 
Construction of the company’s mixed-used project will commence construction jointly with the landowner for Bt500 million worth of retail development next year, Cornick said.
A further Bt2 billion will then be spent on developing a retail and entertainment project on the site in 2014, with the remaining Bt4 billion then used to develop hospitality facilities the following year.
The project will be located on 23 rai (3.7 hectares) close to Pattaya’s long beach.
The company also plans to develop residential property worth between Bt500 million and Bt1billion per project a year, with the focus on the Pattaya area, said the chief executive.
“All of our new projects will be in the form of a joint venture with a new partner or the landowner for development purposes,” he added.
Funding will come from both the company’s cash flow and bank loans in a ratio of 1:2, which is the likely split for the Southpoint Pattaya project, Cornick said.
The company expects to book Bt2 billion of revenue from the Southpoint Pattaya project in 2015.