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Hemaraj gets island land for mix resort project

By on May 15, 2012 in Property News

Leading industrial-estate developer Hemaraj Land and Development has acquired land on Koh Lan, an island off Pattaya, to create an integrated resort, entertainment and leisure complex.

The total cost of the project has not been calculated yet as it is in a very initial stage, with its master plan being worked out in terms of partnerships and other details. The company said it would be a unique mega-project for the area, with a shopping centre and other facilities such as a yacht club. Hemaraj announced yesterday that it had acquired 228.15 rai (36.5 hectares) of land on Koh Lan, whose name translates as Million Island; the development is called Million Island Pattaya.

The plan is for an integrated resort, entertainment and leisure development that will serve the vast tourism and business needs of Pattaya, which attracts 8 million tourists a year. It will also complement the industrial development of the Eastern Seaboard.

Hemaraj will oversee the realisation of the master plan, infrastructure, utilities, and environmental planning of the project. Upon completion, the development will provide numerous resort hotels, a marina, recreation, entertainment, a private beach, boutique retail, dining, and a convention centre.

To facilitate the acquisition, Hemaraj has formed a new company, Million Island Pattaya Co, with registered capital of Bt1.75 billion, 54 per cent of which is paid up. Initial shareholding by Hemaraj is 80 per cent with expected additional partners and various sub-developers. The initial investment was made from working capital.

David Nardone, president and chief executive officer of Hemaraj, said the Million Island Pattaya project would be developed in phases with several partners.

“With increased industrialisation and residential needs in the Eastern Seaboard, hotel, entertainment and convention venues are limited. The acquisition of 228 rai, though large, is a fraction of the cost of resort, hotel or entertainment developments in Bangkok or Pattaya seafront locations. This provides the opportunity for a controlled-environment integrated resort and entertainment real-estate development, much like our experience in industrial-estate master planning and development.”

Hemaraj manages six industrial estates with a total area of 31,280 rai, with automotive, petrochemical and other clusters comprising 507 customers. Estimated customer investment is US$25 billion (Bt780 billion).

Source : The Nation 12 May 2012

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