Charn Issara Development Plc will spend THB 3 billion to acquire a pair of hotels in Britain, according to multiple media outlets. The company has decided that now is a good time to invest in the UK property market as the falling pound has made prices more competitive. The hotels have not been selected as of now.
The Sri Panwa Hospitality Real Estate Investment Trust will conduct the purchases once the properties have been identified. The real estate investment vehicle is partially owned by Charn Issara and its subsidiary Charn Issara Residence Co. The company is searching for hotels that have 40 rooms and are located in the outskirts of London. Charn Issara is willing to invest THB 1.5 billion in each hotel.
“Investment opportunity in UK property is interesting as investors are estimated to gain a combined profit of around 10-20 per cent from property purchases thanks to lower property values and a weaker pound sterling,” says Charn Issara Chief Executive Songkran Issara to the Bangkok Post.
There are also plans in place for the investment trust to buy 2 hotels in Thailand for a combined THB 2.5 billion. The properties are the Baba Beach Club Phuket and Baba Beach Club Hotel & Residence Cha-am-Hua Hin. The company is also developing a project in China with a local developer.
“We will manage a hotel development in Hainan worth THB 10 billion which will be operated by Sri Panwa Hotel’s management team when operations commence in 2 years,” says Songkran.
On the property side of its business, Charn Issara has a budget of THB 2 billion set aside for the acquisition of new plots of land. The company does not have plans to launch new projects in 2017, but will instead unveil new phases at existing projects in Thailand.
“We will continue being cautious in developing new sites for 1-2 years as there is an oversupply in some locations and the property market this year will continue slowdown,” says Songkran.
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