Competition among Thailand’s top property developers is fierce and Origin Property believes its acquisition of Proud Residence will help it close the gap among the 5 biggest companies. Origin Property will purchase the luxury condo developer for THB 4 billion.
“We decided to conclude this deal to boost our business expansion to cover all market segments in residential projects. We will not change management of Proud Residences but it will be our subsidiary to expand in the premium market over the next period,” says Origin Chief Executive Peerapong Jaroon-ek.
Origin Property will finance its acquisition by using a combination of cash on hand and borrowing from commercial banks. The deal still needs to be approved by shareholders who will vote on it at a meeting in July.
Proud Residence only has a single project in development at the moment, the upscale Park24. The development has a sales backlog of THB 10.5 billion and is worth THB 17 billion. There will be 2 phases and 5 buildings at the project with construction on the 1st phase set to be completed by the end of the year.
Park24 Phase 2
Park 24 will have a total of 2,076 units when finished and sales at the 1st phase are currently at 74 per cent. The project’s 2nd phase will be completed in 2020. The acquisition of Proud Residence will give Origin Property a foothold into the lucrative and popular luxury condominium segment, an area where the company has struggled to make inroads in. Of the buyers at Park24, 49 per cent are foreigners.
“If Origin’s shareholders approve the acquisition of Proud Residence, Origin’s revenue is expected to leapfrog during 2017-20. The acquisition will help Origin enter the luxury condo segment and expand to new markets, including new foreign customers, foreign partners and investment buyers,” says Peerapong.
Receive the latest property news on email from Thailand’s No.1 property website here, or read more project reviews
