Investments to be boosted by Singapore’s City Development Limited
17 July,2006 KANANA KATHARANGSIPORN
Despite the poor economic outlook, Singapore’s City Developments Limited (CDL) plans to step up its investment in Thailand, eyeing hotel, commercial and residential properties.
“Our current investment in Thailand is very small, compared with other countries.” Said Chia Ngiang Hong, CDL group general manager.
“Our future investment (in Thailand) is unlimited. We’re quite confident for the short and long term in Thailand. Though there were negative factors during the first half of the year, they are minor in the short term.”
Mr Hong spoke yesterday at the launch of the company’s new residential project, the Millennium Residence@Sukhumvit.
M.R. Chatu Mongol Sonakul,chairman of project coordinator MTR Asset Managers Co, said the Thai economy remained fundamentally strong.
“We have to continue with the launch of the project as the politic situation won’t change in a few days.” Said M.R.Chatu Mongol, a former governor of the Bank of Thailand.
The Millennium Residence@Sukhumvit will be a luxury condominium worth 10 billion baht located on Soi Sukhumvit 16. The project consist of two buildings comprising of a total of 302 units, with unit prices ranging between 6.6 to 90 million baht or 110,000 baht per square meter.
It is a joint venture between CDL and MR Sukhumvit Ltd, constructed with a fund called Recap Investments.
CDL is seeking more developers or land owners to go into partnership with in order to pursue further hotel, commercial and residential development projects in Thailand.
The firm has already invested 10 billion baht in Thailand this year in five projects.
Four of them are located in Bangkok, including the Millennium Hilton, a five star hotel launched in May; the 42-storey office building Exchange Tower Bangkok; the Millennium Sukhumvit, which is scheduled to open in 2007.
CDL has also spent four billion baht acquiring a 95% stake in the Jungceylon hotel and retail complex in Phuket, whose developer Phuket Square Co went bankrupt last year.
About 90% of the complex has been completed, which includes a 440-room hotel and commercial space with total area of 200,000 square meters.
CDL has been seeking a management and financial team to operate the project.
The project’s hotel is scheduled to open by the end of the year, Phuket’s peak season.
Set up in 1963, CDL operates in 20 countries with over 250 subsidiaries and six listed companies.
With over 100 projects in Singapore and the region, CDL is one of the biggest commercial landlords in Singapore and controls one of the largest land banks amongst private developers.
CDL is listed on Malaysian Stock Exchange. Its market capitalization in Singapore is about 200 billion baht.