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The Number of Building Transactions Increased in Q4 2009

Thailand Investment MarketView Q4 2009

There was an increase in the number of building transactions in Q4 2009. The most notable transactions were TPARK LOGISTICS PROPERTY FUND (TLOGIS) and CIMB Thai Bank. TPARK LOGISTICS PROPERTY FUND (TLOGIS) bought 15 warehouses with usable area of 70,731 square meters from Ticon industrial PLC, for THB 1.53 billion. According to a company report to the Stock Exchange of Thailand, CIMB Thai Bank sold its office building on North Sathorn Road for THB 1 billion to an unknown buyer. TCC Land bought the Peugeot office building on Surawong Road for THB 800 million according to the Prachachart Turakij newspaper. Pacific Star International (Thailand) announced that had sold 8 penthouses at The Sathorn Gardens condominium development covering 3,700 square metres to a single investor for around THB 100 million.

Q4 saw two major land transactions; L.P.N. Development Public Company Limited bought land in Bang-Krapi, Bangkok (7-1-70.1 rai or 2,970 sq.m.) for approximately 222.75 million Baht. Ek-Chai Distribution System Co., Ltd. (Tesco Lotus) purchased land in Kao-Yai Market Village project (26-3-14 rai or 10,714 sq.m.) from Siam Future Development PLC. 198 million Baht (equal to about THB 18,480 per wah).

Bangkok is now seeing upward trends in the property market; this is supported by a more positive outlook in the local economy (GDP turned positive to ~ 3.5% in Q4) an improvement of 63% in Thailand’s equity market from Q1 2009. The SET index increased from 450 in Q1 to 735 in this quarter.

Property Funds
During Q4 2009, property funds offered investors annualized yield of around 4.90% to 11.94%. TPARK Logistics Property Fund (TLOGIS) was listed on the Stock Exchange of Thailand during the quarter. The fund, worth 1.53 billion baht, is a specific property fund with an unspecified project life and par value of 10 baht per unit. It invested in freehold 15 warehouses with a usable area of 70,731 square meters, located on TICON Logistics Park Wangnoi (48-3-32 rai), Ayudhya Province and TICON Logistics Park Bangna, Chacheongsao Province (41-1-80 rai). The fund will offer a minimum guaranteed return of 7% for 7 years.

This is an extract from Thailand Investment MarketView Q4 2009, To download the full Thailand property investment report.

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