Both Singha Estate Plc and Sansiri are considering a move to take over projects owned by Pace Development Corporation Plc, reports local media. The developer may need to sell its property projects because it is being forced to repay loans to Siam Commercial Bank (SCB).
Singha Estate has already studied Pace’s property projects, all of which are in the high-end segment, as well as the developer’s land bank which has a prime 2.5 rai plot on Narathiwat Ratchanakharin Road near Chan Road. Pace acquired this site for THB400 million in 2015.
“A sold out project where construction has not started is not attractive as it requires construction management, which we have to assess further. For projects with remaining units for sale, attractiveness will depend on prices,” says Nattavuth Mathayomchan, Singha Estate Chief Residential Development Officer, to the Bangkok Post.
Pace now has hefty financial liabilities and bills of exchange with SCB. The bank is inviting other developers to purchase the company’s assets including projects and land. Pace has not commented on the reports, according to media outlets.
Pace is best known for its large scale developments such as The Ritz-Carlton Residences Bangkok at MahaNakhon. The company reports that the residential condo was 75 per cent sold with THB7 billion pending in revenue recognition. Another luxury condo project, Nimitr Langsuan, is already sold out but the developer hasn’t started construction on the development. MahaSamutr, a luxury villa complex in Hua Hin worth THB1.4 billion, is 30 per cent sold and work on the project has begun.
The company has plans to build an ultra-luxury condo on its empty land plot. The Wind Shell was 40 storeys and had only 36 units priced between THB85 and THB100 million. Pace was operating a sales gallery at the Cube mall in MahaNakhon, but the future of the project is now uncertain.
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