Thai Muang Golf Course
Client Represented: Major Hong Kong Developer
Location: Phang Nga, Thailand
Topline: Acquired golf course and 1,000-rai land which was one of the biggest transactions for a development
CBRE’s Resort Land Services worked with our Hong Kong office to advise and assist a major Hong Kong developer in acquiring a golf course and land developed on 1,000 rai with a 2.5-kilometer long white sandy beach.
The Thai Muang Golf course site was first developed in the 1990s, at the same time as Laguna in Phuket. It is located in Phang Nga, a relatively undeveloped region lying between the established tourist areas of Phuket and Khao Lak and is a prime site for development as a future luxury resort destination.
The developer was new to property development in Thailand and originally wanted to acquire land on the coast of Phuket. They wanted a site which was large enough to give the critical mass for development as an integrated resort development, and with a long beach frontage.
However, there is a scarcity of beachfront sites in Phuket, especially of the plot size and with the length of beach frontage required.
The sale and purchase contract also needed to be drafted to meet the international requirements of the purchaser, whilst not imposing onerous conditions on the Thai vendor that could abort the transaction.
Due to the lack of suitable land available in Phuket, the Resort Land Services team advised the purchaser to consider Phang Nga.
We then carried out an extensive search of sites in that area and identified the Thai Muang Golf Course as capable of being developed for the client’s purposes although not on the market for sale. The team prepared a market overview of the viability of the site, before lengthy discussions were held with the Thai land owner to consider a disposal.
Throughout the process, a pragmatic approach was essential in reaching a realistic market price for a complex site of this size.
We also introduced reliable Thai joint venture (JV) partners to co-invest with the client and worked closely with their lawyers and the vendor on the due diligence process.
It was necessary for our team to establish a collaborative working relationship between the vendor and the purchaser with their Thai JV partner to overcome the many hurdles to successfully complete the transaction.
The property was sold in 2007, approximately nine months after starting the search, and was one of the biggest transactions for a development project in Phang Nga.
The client has since continued to use CBRE’s services for strategic advice on the best development approach and on property management and has also appointed us to dispose of other properties in their portfolio.