Thailand: Pace Development to raise $375.7m via REIT

Image from MahaNakhon

Thailand’s listed property developer Pace Development Corporation Pcl plans to sell its assets worth more than 13 billion baht ($375.7 million) into a real estate investment trust (REIT) in the next few years, according to a report in Bangkok Post.

The assets to be sold will include Sky Observation Deck worth 8 billion baht, Bangkok Editon Hotel worth 4 billion baht and the retail building – MahaNakhon Cube – worth 1.5 billion baht.

Pace generates 30 per cent of its revenue from property business and the rest 70 per cent from gourmet food brand Dean & DeLuca, which has 52 branches domestically and internationally. It plans to invest $30 million on adding 50 branches in the US next year and targets to have 300 branches worldwide in 2019.

“We may consider setting up a conglomerate or moving to other sectors like food and drinks in which the price-to-earnings ratio is much higher than in the property sector,” chief financial officer Natha Kittiaksorn told Bangkok Post.

By 2020, it projects the total revenue will grow to 30 billion baht. Half of them comes from Dean & DeLuca, 10 billion baht from property development and 5 billion baht from Bangkok Edition Hotel, Cube Mall and observation deck at MahaNakhon.

Next month, Pace plans to stage a roadshow in Hong Kong to sell the remaining 30 per cent of the 14.5 billion baht worth Ritz-Carlton Residences at MahaNakhon thanks to strong demand among foreign buyers for luxury condominiums in Bangkok, which remain cheaper than properties in Hong Kong or Singapore.

Pace reported total revenue of 3.2 billion baht in the first six months, rising from 1.56 billion baht from the same period last year. Meanwhile, it posted a net loss of 573 million baht, improving from a net loss of 904 million last year.

Half of its revenue was from property business and the other half from Dean & DeLuca. The retail space, the hotel and the observation deck will generate the income next year.

Also read:

Thai property developer PACE to acquire land in Japan for $14.9m

Gourmet grocery cafe and store Dean & DeLuca plans to list in US

Thailand: Sripanwa Hotel Property Fund to turn into REIT this year

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.