Several Thai developers are considering expanding into the United Kingdom in the aftermath of the Brexit vote. The weakening of the pound has given several Thai companies a chance to acquire property in a market that was seemingly unobtainable prior to the vote to leave the European Union.
Local media reported that Singha Estate is looking to acquire more hotels in Europe, focusing on projects in the UK. It was noted that the developer has set aside THB700 million to spend on select projects outside of Thailand. The developer could acquire as many as three hotels in the UK, each one having roughly 70 rooms.
Singha Estate chief executive officer Naris Cheyklin explained to The Nation that hotels in Britain are available for as much as 10 percent below their market value at the moment. That’s due to he weakening of the pound, which has plummeted after the Brexit vote.
Sansiri already has a project in London and could now look to expand its presence in the UK. Chief operating officer Wanchak Buranasiri told The Nation that the company is willing to expand its investment in the UK. However, no further details apart from the stated interest have been released.
“We have seen an increase in inbound inquiries since the Brexit vote, especially from Asian HNWIs and family offices, who still see London as a safe destination for property investments,” Henry Chin, head of research for CBRE Asia Pacific, told Reuters.
Investors from China have already pumped THB127 billion into the UK purchasing everything from hotels and movie theaters to soccer teams. According to China Daily, there have been eight significant investments from China into Britain since the Brexit vote concluded.
Even before the EU referendum, Asian buyers were drawn to London’s real estate market. CBRE noted that they accounted for 19 percent of all central London properties purchased in 2015.
