Thailand-based property developer Singha Estate has receive a $185-million loan from Krungthai Bank to complete its first acquisition in Europe. In another development, PTT Global Chemical decided to postpone its investment in a petrochemical complex in Indonesia, following change in the government policy.
Singha Estate gets loan for UK acquisition
Singha Estate, a property subsidiary under Singha Corp’s umbrella, has got a 120-million-pound loan ($185 million) from Krungthai Bank for acquiring British Jupiter Hotels, which operates 26 Mercure-brand hotels in the United Kingdom.
The acquisition, which was announced last month, will be made under the joint venture between Singha Estate and FICO Holding (UK) with total investment of 154.77 million pound.
This is the company’s third asset acquisition following a hotel on PP Island and Sun Towers Office Buildings. It also boosted a partnership with Nirvana Development through a share swap as a strategy to expand into a boutique realty business.
Due to its aggressive expansion, Methee Winichbutr, CFO of Singha Estate, said, its revenue target was revised to boost to 30 billion baht by 2019, up from 20 billion baht in its earlier announcement.
“The budget for acquisition in 2016 will be higher than 15 billion baht this year. We will focus on commercial properties such as hotels and office buildings,” he said.
It is also negotiating to buy a four-star hotel in Thailand with the size of 100 rooms. The deal size will be worth around 2 billion baht. It is expected to seal the deal within this year.
PTTGC postpones investment in Indonesia
PTT Global Chemical PCL (PTTGC), Thailand’s biggest petrochemical firm, has delayed its $5-billion investment in setting up a petrochemical complex in Indonesia for one or two years.
“Indonesia exports crude oil while it imports a plenty of finished products. Therefore, its government considers the oil refinery more important than the downstream although we tried to explain that the petrochemical complex will give higher margin. We have more time to conduct the feasibility carefully,” Supatanapong Punmeechaow, President and CEO of PTTGC, told the media.
Apart from this project, it has working on another $5.7-billion petrochemical complex in the United States, which is expected to be finalised in the middle of next year.
He said that it expected to spend around $100 million on the feasibility study including the plant design, marketing and financial source.