Pace Development Corporation Plc., the owners of the MahaSamutr Country Club and luxury villas in Hua Hin has secured 14 billion THB from the sale of assets at the country’s highest building, MahaNakhon, to duty-free retailer King Power International Group.
The company is now seeking a partner for a joint venture at MahaSamutr and to change the concept to that of a wellness hotel.
Pace chief executive Sorapoj Techakraisri said the proceeds from the sales, together with 3.89 billion THB available from a capital increase in February, will reduce company debt and allow for the continuation of four existing projects. Information was provided at a press conference in Bangkok last month.
Pace recorded total debt of 30.16 billion THB, against total assets of 32.42 billion THB at the end of 2017. It reported total revenue of 9.27 billion THB and a net profit of 171.12 million THB for that year. The company has been mired in debt after it bought and expanded American restaurant chain Dean & DeLuca four years ago and the realisation of the MahaNakhon tower and other prime real estate projects including MahaSamutr. Pace is the developer of the MahaSamutr luxury villa project in Hua Hin, worth 3.9 billion THB with 3 billion THB remaining for sale.
The company plans to seek a partner in a joint venture at the Hua Hin site and change the concept to that of a wellness hotel.
Under the MahaNakhon agreement, Pace Development is selling land, the 154 room Bangkok Edition hotel, the tower’s observation deck, the MahaNakhon Cube retail building, interiors, operating licenses and related contracts to King Power, Thailand’s largest travel retailer.
According to King Power CEO Aiyawatt Srivaddhanaprabha, the proposal is for the 77 storey tower to be renamed King Power MahaNakhon, although this remains a topic for discussion with the other owners. The company is also considering buying 53 residential units of Ritz-Carton MahaNakhon, which is part of the MahaNakhon project, he said. “We believe this is a win-win for both sides, as we gain a new business and Pace gets capital to operate its business.”
MahaNakhon is located on Narathiwas Road in Bangkok’s Sathorn district and formally completed in August 2016. It exceeded the Baiyoke II Tower to become the tallest building in Thailand at a height of 341 metres. However last month access to some parts of the main building was not possible.