Fico Corporation has revealed it has expanded its real estate business with the acquisition of two hotels in the United Kingdom, and at the same time, it announced plans for five luxury real estate developments in Sukhumvit and Silom in Bangkok.
Fico plans to focus on boosting its property development business through its five new luxury hotels, commercial and residential projects in the heart of Bangkok. It also plans to finance its European portfolio worth EURO300 million, with two recent hotel acquisitions in the United Kingdom.
Krit Srichawla, Chief Executive Officer of Fico Corporation, told reporters that Fico Corporation is a diversified business conglomerate with business interests in textile, hospitality, real estate, food and beverage, retail fashion and entertainment. It owns more than 40 famous hotels, restaurants, and imported fashion brands.
This year Fico Corporation and its affiliated companies are set for further expansion into both existing and new niche areas, catering more to urban lifestyles.
The THB4.1 billion investment scheme aims to boost its local and overseas portfolios. Up to THB3.58 billion will be spent on domestic investment up to 2017, and EURO15 million euros on overseas ventures, including the acquisition of two hotels in the United Kingdom early this year.
Fico’s European portfolio is expected to reach EURO150 million in value this year and eventually reach EURO300 million within 3 years.
Currently Fico’s real estate development portfolio in Thailand consists of Metropolis – a 21-storey office tower worth THB1.3 billion, Residence Metropole (pictured) – a boutique service apartment targeting the high-end market worth THB400 million.
The company also plans to spend up to THB80 million transforming Le Fenix Sukhumvit on Sukhumvit Soi 11 to a boutique hotel, as well as spending THB500 million on the construction of a ‘budget hotel’ in the Silom area of Bangkok next to the Novotel Silom Hotel.
It also plans to spend THB1 billion on the construction of a serviced apartment in Sukhumvit 65.
In terms of its overseas property investments, in June 2014 Fico Corporation acquired eight hotels in Germany in a deal worth EURO75 million Euros. These are now worth more than EURO100 million, is said.
Early this year Fico acquired two hotels in the United Kingdom – the Lion Hotel, Shrewsbury and the White Swan Hotel, Halifax – in a deal valued at EURO15 million. It plans to increase the total value of its European property assets to EURO150 million this year, and to EURO300 million within three years.
The company is currently working on several transactions in Europe with a target to reach 3000 keys within the next two years.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
