Thailand Investment MarketView Q1 2010

The most notable transaction during Q1 2010 was the sale of 34,000 square metres of strata title offices in Serm Mit tower on Sukhumvit Soi Asloke by Lasalle Investments to S.P. Building co., Ltd. The transaction price was approximately THB 1.5 billion (THB 44,117/sq.m.).

Values of prime land plots in the central Phloen Chit area have risen above 2008’s record levels to a new peak of 1.5 million baht per square wah. Sansiri Public Company Limited acquired 2-rai plot adjacent to the American ambassador’s residence on Wireless Road. The total transaction value was 1.2 billion Baht and Raimon Land have apparently sold 2-3-42 Rai out of a total of approximately 9 Rai on their Ploenchit site.

Thai Commercial Investment Fund (TCIF) plans to launch a freehold property fund investing in the Nation Tower Building which consists of 3 office buildings and 1 car park building in Q2 2010. The subscription period for the IPO was from 15 - 23 March 2010. The fund has a market capitalization at IPO of approximately THB 1.96 billion with par value of 10 baht per unit. The fund will offer a minimum guarantee return of 4-5% for three years.