Thai Asian Property, S'pore Pacific Star in jv

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1 Media : Reuters Date : 29 Nov 07 Thai Asian Property, S'pore Pacific Star in jv BANGKOK, Nov 29 (Reuters) - Thailand's Asian Property Development (AP.BK: Quote, Profile, Research) said on Thursday it had formed two joint ventures with Singapore's Pacific Star Group to build two condominiums worth a combined 6 billion baht ($177 million). Building of the two projects in Bangkok's central business area was expected to start in the middle of 2008, the Thai firm said in a statement. Pacific Star, which manages a Singapore luxury residential fund for Societe Generale (SOGN.PA: Quote, Profile, Research), has invested about $5 billion in Asian real estate, the statement said. Asian Property would manage the two condominiums and hold 51 percent of the joint venture firms, while Pacific Star would bring know-how and own the remaining 49 percent, it said. Asian Property, Thailand's fourth biggest housing firm by market value, has shifted to fast-selling city centre condominiums as lower consumer confidence due to postcoup political uncertainty and high oil prices hit the housing market. At 0450 GMT, Asian Property shares, valued at $506 million on the Thai bourse, were up 2.2 percent at 6.90 baht, while the Thai main index (.SETI: Quote, Profile, Research) was up 1.59 percent. ($1 = Baht) (Reporting by Saranya Suksomkij, writing by Khettiya Jittapong, editing by Michael Battye)

2 Media : Yahoo Malaysia Date : 29 Nov 07 Thai Asian Property, S'pore Pacific Star in jv Reuters - Thursday, November 29 At 0450 GMT, Asian Property shares, valued at $506 million on the Thai bourse, were up 2.2 percent at 6.90 baht, while the Thai main index was up 1.59 percent. (Reporting by Saranya Suksomkij, writing by Khettiya Jittapong, editing by Michael Battye) - BANGKOK, Nov 29 - Thailand's Asian Property Development said on Thursday it had formed two joint ventures with Singapore's Pacific Star Group to build two condominiums worth a combined 6 billion baht. Building of the two projects in Bangkok's central business area was expected to start in the middle of 2008, the Thai firm said in a statement. Pacific Star, which manages a Singapore luxury residential fund for Societe Generale, has invested about $5 billion in Asian real estate, the statement said. Asian Property would manage the two condominiums and hold 51 percent of the joint venture firms, while Pacific Star would bring know-how and own the remaining 49 percent, it said. Asian Property, Thailand's fourth biggest housing firm by market value, has shifted to fast-selling city centre condominiums as lower consumer confidence due to post-coup political uncertainty and high oil prices hit the housing market. At 0450 GMT, Asian Property shares, valued at $506 million on the Thai bourse, were up 2.2 percent at 6.90 baht, while the Thai main index was up 1.59 percent. (Reporting by Saranya Suksomkij, writing by Khettiya Jittapong, editing by Michael Battye) 2

3 Media : 938 Live Date : 30 Nov 07 Pacific Star in Bangkok property joint venture Thailand's Asian Property Development says it has formed two joint ventures with Singapore's Pacific Star Group to build two condominiums worth a combined US$177 million. Building of the two projects in Bangkok's central business area was expected to start in the middle of Asian Property would manage the two condominiums and hold 51 per cent of the joint venture firms, while Pacific Star would bring know-how and own the remaining 49 per cent. Pacific Star, which manages a Singapore luxury residential fund for Societe Generale, has invested about US$5 billion in Asian real estate. 4

4 Media : Bangkok Post Date : 30 Nov 07 PROPERTY RESIDENTIAL DEVELOPMENT AND CONSTRUCTION AP joins with Pacific Star for condo projects Two developments worth B6bn in total SOMPORN THAPANACHAI The listed developer Asian Property Development Plc (AP) has found a strategic partner in the Singaporebased Pacific Star Group to develop two new condominium projects worth six billion baht. The projects, which will be launched in the third quarter of next year, include the three-billion-baht The Address on a 3.2-rai plot in Sathorn and the three-billion-baht Life Condominium on a seven-rai plot near the Ratchadaphisek subway station. The investment for the two projects would be about four billion baht, and construction would be completed in 2010 and Two new companies will be established, AP Pacific Star (Sathorn) Co, Ltd and AP Pacific Star (Ratchada) Co. Each would have initial registered capital of 10 million baht, with AP holding 51% and Pacific Star the rest. Capital will increase to 400 million baht later. Anuphong Asavabhokhin, AP's chief executive, said Pacific Star would help mainly in the designing process. The Address and Life projects would contain units designed to attract both foreign and Thai buyers. The companies did not establish a joint venture due to financial reasons. AP had a debt-to-equity ratio of only 0.87 times at the end of September, but the deal was based more on mutual benefits for both sides. ''We will develop the two projects even without the joint venture. We join with Pacific Star as they have the same philosophy, especially on controlling the debt-to-equity ratio,'' said Mr Anuphong. Asian Property will handle the management of the new projects. Prices have not been set as they depend on the final designs. Average prices for The Address brand range between four and six million baht, while the Life brand is between two to three million baht a unit. Pritpal Singh Gill, Pacific Star's country manager, said the group was comfortable working with Asian Property due to its visionary management style that aims to offer world class products. The co-operation would bring credibility to institutional investors, he said. Pacific Star expects to invest another US$60 million in Thailand next year. Its current accumulated investment in the country exceeds $100 million. ''We do not set a budget for investment as we are an opportunity-driven company that is open for any opportunity,'' said Mr Gill. The company is also looking to invest in residential and hospitality developments in Phuket, Pattaya and Hua Hin. Mr Anuphong said AP planned 10 new projects worth about 15 billion baht next year, half of which would be condominiums, including the two mentioned projects. It spent three billion baht to accumulate land this year and expected to spend another two to three billion baht on land purchases next year. The company has a sales backlog of 16.3 billion baht. 8

5 AP shares closed yesterday on the SET at 6.90 baht, up 2.2%. 9

6 Media : Today Online Date : 30 Nov 07 This story was printed from TODAYonline New fund to invest in property It will start with two projects in Bangkok and is also eyeing opportunities in S'pore Friday November 30, 2007 Esther Fung esther@mediacorp.com.sg A new fund has been set up to invest in prime development projects in Asia, including Singapore, targeting US$400 million ($580 million) of prime real estate acquisitions. The Asia Real Estate Prime Development Fund (AREPDF) has already attracted US$250 million from institutional investors and is expected to reach the target of US$400 million by the first quarter of next year. It's the fourth fund launched by the real estate investment house Pacific Star Group, and earlier funds have bought into Temasek Tower, One George Street and The Adelphi. "We are looking at all possible opportunities, including in Singapore. If the opportunity makes sense and allows us to achieve our targeted returns, then, we will consider it seriously as we have done with Bangkok as our seed investment," said Mr Glen Chan, president of Pacific Star Investment and Development, who heads the team of fund managers of AREPDF. The first investment, he said, would be a 49-per-cent equity stake in two residential development projects in Bangkok. These condominium projects will be developed by Asian Property Development (APD), which is listed on the stock exchange in Thailand and is one of the largest residential property developers in downtown Bangkok. 10

7 "This investment is compelling because of the scarcity of prime freehold residential land parcels in the heart of Bangkok and the robust demand for city centre condominiums near train stations," Mr Chan said. This fund will invest about US$20 million via joint venture companies, which will develop two condominiums in Bangkok, targeted at upper-middle income local buyers. The two projects, which will develop 1,507 units, will be completed in three years. "The investment returns from such condominium developments are attractive, considering that the prime location sites are within Bangkok's central business district," said Mr Chan, who added that the project has attracted strong interest from potential buyers. Copyright MediaCorp Press Ltd. All rights reserved. 11