A total of THB112 billion was splashed out on property investment in Thailand during the 2nd quarter with domestic companies spending the most. The 2 largest transactions were completed by TCC Group and were valued at THB59 billion combined, local media reports.
The biggest deal saw TCC Hotel Asset Management Co Ltd, a TCC Group subsidiary, acquire THB30 billion in leaseholds and assets from the Thai Hotel Investment Freehold and Leasehold Property Fund, according to research from Edmund Tie & Co Thailand. A total of 12 hotels were involved in the transaction.
Another TCC Group subsidiary, TCC Commercial Property Management Co, was involved in the 2nd largest deal. The company spent an estimated THB29 billion to purchase real estate assets from the Thai Commercial Investment Freehold and Leasehold Fund, reports the Bangkok Post.
TCC Commercial Property Management acquired Empire Tower, CyberWorld Tower, Athenee Tower, 208 Wireless Road Building, and the Nation Tower. The expenditure was far greater than the THB19.9 billion the TCC Group spent on real estate in the 1st quarter.
TCC Group’s THB122 billion takeover of Big C Supercenter Plc Pic via pattaya.zagranitsa.com
It was noted that the 2nd quarter transaction volume was the largest since the 1st quarter of 2015 when total investment was driven by TCC Group’s THB122 billion takeover of Big C Supercenter Plc.
International companies were relatively quiet when it came to investing in Thailand real estate. There was only 1 deal involving a foreign company, but the number of multinational investors considering real estate assets in Thailand could grow in the future. However, the restrictions on foreign buyers does make the country less attractive in certain instances.
Despite these restrictions, there should be continued interest from investors in other Asia-Pacific countries and Thai investors are likely to keep looking at real options in overseas markets, notes Edmund Tie & Co Thailand. Thai investors will remain the dominant player in the domestic market for the foreseeable future though.
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