Bangkok--31 Mar--Francom Asia
Photo Caption:
The refinancing of The River, Raimon Land's flagship development along the Chao Phraya, has been finalized, raising the company's shareholding equity in the project from 85% to 100%. With Raimon Land Chief Executive Officer Mr. Hubert Viriot (center) are (from left to right): Kitti Tungsriwong, Raimon Land Chief Operating Officer; Suthas Ruanmanamongkol, President of TISCO Bank; Jaree Wuthisanti, Senior Executive Vice President, Siam City Bank and Kamalkant Agarwal, Senior Executive Vice President, Standard Chartered Bank.
Luxury property developer Raimon Land Plc has successfully finalized negotiations with its bank syndicate to refinance Taksin Properties Company Limited ("TPCL"), the owning entity of Raimon Land's flagship project, "The River".
The bank syndicate, led by Tisco, Standard Chartered Bank and Siam City Bank, will provide a new facility of Baht 5.48 billion, up from the original amount of Baht 5 billion.
Under the new financing terms, the cost of funding will be reduced by 150 basis points, generating a net saving of Baht 80 million for TPCL.
Raimon Land Chief Executive Officer Hubert Viriot declared: “The refinancing of Taksin Properties Company Limited (The River project) marks the final step of Raimon Land’s debt reorganizing and demonstrates the confidence that major banking institutions have in our company. Overall, Raimon Land has reduced its average cost of debt by approximately 200 basis points over the past 24 months, from above MLR in January 2009 to below MLR today. This will significantly reduce our interest expenditures, as well as our total operating costs.”
The new loan will be divided into 3 tranches, with the main tranche of Baht 5 billion allocated to the construction of The River.
The second tranche of THB 315 million will fund Raimon Land's acquisition of all outstanding shares in The River Project from Bangkok Property Investment Pte Limited (BPI), a subsidiary of IFA Hotels and Resorts (IFAHR), Raimon Land’s major shareholder. As a result, Raimon Land will consolidate its aggregate investment in The River Project from 84.85% to 99.85%. Moreover, Raimon Land’s revenue stream from this project will increase from Baht 12.75 billion to Baht 15 billion. Similarly, the resulting profit sharing will increase by 15%.
Mr Viriot added: "The acquisition of the remaining shares in The River Porject is part of our long-term strategy to consolidate our ownership over our core assets. With the completion of our corporate restructuring, our major shareholder IFAHR will consolidate its position at the PLC level, whilst connected transactions at the project level will gradually be unwound. This is excellent news for all our shareholders, who will benefit from incremental income streams at a reduced cost and from stronger support from a global investment house."
The third and final tranche of THB 165 million will be used to finance the construction of Vue, Raimon Land’s first boutique shopping mall, located adjacent to The River and also owned by TPCL. "We are delighted to close the funding of Vue just a few weeks after its official launch. Vue is a strategic investment, as part of our long-term income stream diversification.” concluded Mr Viriot.
Raimon Land has achieved over Baht 10 billion in sales revenue since it launched "The River", and has sold close to 75% of the project’s overall inventory. Construction of “The River” is on track for completion in 2012, with both towers now topped off and the Glass Curtain Walls nearly finished.
Vue is also going full steam ahead with 80% of the lettable area already contracted with top retail brands, and construction underway with completion expected by the end of October 2011.
ABOUT THE RIVER:
The River, Raimon Land's flagship project, is located along the legendary Chao Phraya, in the heart of Bangkok's true 5-star neighbourhood. Scheduled for completion in early 2012, The River features two iconic towers - the North Tower, with 311 units, and the South Tower, standing at approximately 250 metres in height, with 522 units. An unrivalled choice of unit types is available, ranging from studios and single-bedroom apartments to loft duplexes and penthouse units, each designed to ensure stunning, unobstructed views of the city and the river. Also scheduled for opening in the fourth quarter of 2011 is Vue, a boutique shopping mall located alongside the residential complex that will conveniently cater to the residents of Bangkok's most desirable address.
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ABOUT RAIMON LAND:
Listed on the Stock Exchange of Thailand (SET), Raimon Land Public Company Limited (RAIMON) primarily focuses on the development of residential real estate in the ‘top-end’ and ‘high-end’ market segments. Since 2003, the company has completed eight properties in Bangkok, Pattaya and Phuket. Four projects are currently under development — The River, Vue and 185 Rajadamri in Bangkok; and Zire Wongamat in Pattaya - representing a combined sales value of Baht 28 billion (USD 930 million). Over the years, Raimon Land has received numerous awards for its ability to deliver high quality residential properties on time and within budget.
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For more information, please visit www.raimonland.com
PRESS ENQUIRIES :
Kharittha Khumpong
Raimon Land Public Relations
C/O Francom Asia
Tel: 02 233 4338 ext. 22
Fax: 02 236 8030
E-mail:
[email protected] Kwanrudee Maneewongwatthana
Deputy Vice President,
Corporate Communications & Brandings
Raimon Land PLC.
Tel : +66 (0) 2651-9601 to 4
Fax : +66 (0) 2651-9614
E-mail :
[email protected]