There’s more than just a new Sukhumvit 19 hotel set to go in development, as the SET-listed Raimon Land PLC (RML), has recently just acquired several land plots across the capital, with a total value exceeding Bt10 billion. These new plots will be used for the future development of luxury condos, following the board’s acquisition of two new plots on Sukhumvit Road from KPN Land Co.
Four of the seven new plots are grouped within a four-kilometre stretch of Sukhumvit Road, located between Asok and Thong Lor.
The key property in this string of deals is the 3.5-rai plot located on Sukhumvit Soi 38 that was acquired for Bt2 billion, which will then be developed with a Bt7.2 billion luxury condominium project, according to news from the property sector.
They’ll be a new condo unit located near a Sukhumvit 19 hotel as KPN Land, the property arm owned by the Narongdej family, will also be handing off a single rai site in the area, alongside a two-rai plot on Sukhumvit Soi 28.
According to Raimon Land, during their report to the Stock Exchange of Thailand on August 16, its board of directors had decided that it would acquire the two plots from KPN Land with a total cost of Bt1.57 billion.
The payment will be made with both Bt500 million cash, and Bt597 million worth of newly issued ordinary shares at an equivalent value of one baht, which amounts to 14.31% of the company’s paid-up capital. The board also approved a cut in Raimon Land’s registered capital, reducing Bt4.58 billion by about Bt915 million after cutting off 914,840,957 unsold shares.
According to a source, there are some objections to the Sukhumvit 28 plot from its neighbours, with calls regarding its environmental impact, but Raimon Land would go and acquire it all the same.
In 2017, Raimon Land purchased a 797 wah2 plot on Sukhumvit Soi 26 for a cost of Bt1.7 billion, which will be the site of a Bt4.9 billion condo project within the second half of 2018 as part of a joint venture with Tokyo Tatemono, a Japanese real estate firm.
RML shares closed on August 16 on the SET, valued at 1.46 baht per share, in trade worth of Bt148.1 million.