Thai property firm Chewathai acquires Thaicorp Capital for $11.32m

Image from Chewathai's website.

Thai listed property developer Chewathai Pcl has approved the acquisition of a commercial asset developer Thaicorp Capital for 358.58 million baht ($11.32 million).

The transaction, made through Chewathai subsidiary’s Chewathai Interchange, was completed on May 16, 2019, according to the company’s disclosure on the Stock Exchange of Thailand on Thursday.

The company has acquired 100 per cent shares in Thaicorp Capital including land, commercial buildings and customer base.

Chewathai’s managing director Boon Choon Kiat said it expects this acquisition to help enhance its profitability in the long run as Thaicorp currently has a backlog worth nearly 100 million baht ($3.15 million).

Chewathai is working on a home office project called Royal City Bangbon by Chewathai. It comprises 168 units of four-and-a-half storey home offices, which put the valuation of the project at 765 million baht ($24.12 million).

“Although it is the first time for us to do the home office, it is a new challenge for us to expand the business horizontally and make us achieve the revenue target at 2.88 billion baht ($90.79 million) this year,” Kiat said.

Chewathai recorded a total revenue of 2.68 billion baht in 2018, up 30 per cent from the previous year. The net profit surged from 155 million baht in 2017 to 264.81 million baht last year.