Thai listed property developer Sansiri Pcl has acquired a 50 per cent stake in Prime Area 38 Co Ltd as well as accepted the assignment of claim on promissory notes from U City Pcl, worth 836.98 million ($25.36 million) baht in total.
Under the deal, Sansiri will spend 35.95 million baht ($1.09 million) on taking 50,000 shares at the par value of 100 baht apiece and 801 million baht ($24.27 million) on the promissory notes.
Sansiri and U City, which equally own Prime Area 38, plan to develop a premium condominium project on a plot of land in Soi Sukhumvit 38 in Bangkok. U City informed in the filing that the value of the land is about 1.5 billion baht ($45.45 million).
“The land is in the strategic location as it is near Thonglor BTS station. Having Sansiri as a joint venture partner, we are confident that the project will be successfully developed as Sansiri has an effective marketing team and proficiency in real estate development market,” said Piyaporn Phanachet, CEO of U City.
Meanwhile, Sansiri’s president Srettha Thavisin recently told the media that the firm projects that pre-sales revenue in the fourth quarter will reach 16 billion baht ($484.8 million), following the recovery of economic outlook and demand in the market.
It reported 24 billion baht ($727.3 million) in pre-sales for the first three quarters of this year, rising 20 per cent from the same period last year. Around 14 billion baht ($424.2 million) was generated from condominium business and the rest 10 billion baht ($303 million) from low-rise development projects.