Ocean1 Tower Project In Jomtien Failed ?

[KhunTao]

I hear that the average off-plan sale price realized to date (around Bt.75,000-80,000 per m2) is significantly lower than the projected cost price of actually building this project (currently estimated at around Bt.120,000 per m2 given the engineering complexity of constructing a 91-stories high tower) .... Any future sales of units in this project will therefore have to realize sales prices well above Bt.120,000 per m2 in order to turn this project economically viable for its developer. How high is anybody´s guess, however at least Bt.175,000 per m2 comes to mind .....

Further, I consistently hear that deposits taken so far by the developer, Siam Best Enterprises, have been used to bankroll expensive marketing campaigns and the procurement of extravagant cars (Aston Martin DB9, Bentley Continental Flying Spur) rather than being put towards commencing construction. Certainly, the "building" site does not evidence much more than a couple of idle "workers" and parked trucks.

Talking to the real estate brokers in the Pattaya/Jomtien region, it apears to be common knowledge that this project will not advance. Some believe that this project will head for bankrupcy, others think that the developer will pospone this project indefinitely whilst milking the market for any additional depsoits that they can get their hands on. What everbody can agree upon, however, is that off-plan buyers (not protected by an ESCROW arrangement) are much exposed on this project and stand a snowball´s chance in hel_l of getting their funds back in full.

Does anyone have any informed views on this project and how it will unravel ?

[SmartFarang]

I hear that the average off-plan sale price realized to date (around Bt.75,000-80,000 per m2) is significantly lower than the projected cost price of actually building this project (currently estimated at around Bt.120,000 per m2 given the engineering complexity of constructing a 91-stories high tower) .... Any future sales of units in this project will therefore have to realize sales prices well above Bt.120,000 per m2 in order to turn this project economically viable for its developer. How high is anybody´s guess, however at least Bt.175,000 per m2 comes to mind .....

Further, I consistently hear that deposits taken so far by the developer, Siam Best Enterprises, have been used to bankroll expensive marketing campaigns and the procurement of extravagant cars (Aston Martin DB9, Bentley Continental Flying Spur) rather than being put towards commencing construction. Certainly, the "building" site does not evidence much more than a couple of idle "workers" and parked trucks.

Talking to the real estate brokers in the Pattaya/Jomtien region, it apears to be common knowledge that this project will not advance. Some believe that this project will head for bankrupcy, others think that the developer will pospone this project indefinitely whilst milking the market for any additional depsoits that they can get their hands on. What everbody can agree upon, however, is that off-plan buyers (not protected by an ESCROW arrangement) are much exposed on this project and stand a snowball´s chance in hel_l of getting their funds back in full.

Does anyone have any informed views on this project and how it will unravel ?

I have been watching this project closely, and agree with your comments - except that you omitted mention of his expensive divorce settlement, the Mercedes Convertible, Porsche Cayenne Twin Turbo, and the Ferrari 365 Convertible. And the collapse of K-TECH. One would think that he would stay away from convertibles as they make him an easier target. I hear that he has taken a lot of Russian monies, through project financing, equity investment, and of course purchases. That could prove to be dangerous if - as you suggest and I agree - he does not have sufficient funds to make refunds.

[NotNew2You]

Isn't the whole idea of building a 91 story building in Jomtien complete lunacy on its face! How anyone could have bought into such a scheme from a development team with no history in Thailand just boggles the mind. But as the old saying goes..."a fool and his money..."

[CRUNCHER]

This same thread is running on both Real Estate and Pattaya Forums

[SmartFarang]

Isn't the whole idea of building a 91 story building in Jomtien complete lunacy on its face! How anyone could have bought into such a scheme from a development team with no history in Thailand just boggles the mind. But as the old saying goes..."a fool and his money..."

Well, to be accurate; they do in fact have history in Thailand but nothing higher than 7-floors.

They built the View Talay Villas, and the three or four 7-story condominium buildings that are dotted around the same area of Soi 5 in Jomtien, together with the Immigration Office and one 7-storey building in Naklua using the names Majestic Residence and View Talay Residence.

[nouvo135]

Somethings Happening.

All the big signs across the front of the land have been taken down. The "A Star Is Born" signs

Tv advertising has stopped.

Maybe this means they have sold all the units???

[jimmybkk]

Still got a front page, albeit small, ad on the front page of Pattaya People newspaper. I hope the <deleted> star is born soon - gotta be the longest gestation period in history.

[prefabs]

Still got a front page, albeit small, ad on the front page of Pattaya People newspaper. I hope the <deleted> star is born soon - gotta be the longest gestation period in history.

Ask Niels, he will know

[foxxx]

the ocean1 racing team now has new sponsors... i'd assume that front page ad was 6-months pre paid for a cheaper rate.

[nouvo135]

Or you might find it was done as favour in view of all the money that was spent advertising just to take away the scent of collapse.It used to be a full page if you remember.. so now its a token Gesture. ask Niels

I know people who work for the company who have been told to say it will be finished in 5 years for sure but they are broke. They have been moved to different projects now. Signs are down. TV advertising stopped.

[Rimmer]

I believe the project is or was a serious intent to create a stunning land mark as well as a personal monument by the driving force behind the scheme. Offices have been erected and soil tests carried out, all the certificates and permits have been obtained but It is probable that escalating costs, world economic events and directors high life styles have combined to force a re thinking and/or a re scheduling of the project.

I did hear 'from a man in a bar' that the project has been cut back to 50 floors which would make more sense at this time, I would stress this is simply hearsay. Only time will tell if it will go ahead or not, given the world economic turmoil but I would doubt it will proceed at this time.

[glyph]

"...I did hear 'from a man in a bar'..."

Well, that settles it.

[jimmybkk]

In that case I'm the proud owner 525 cu.m. of top quality air with great 360 degree views over Jomtien from the equivalent of the 76th Floor. If anyone's interested I am reluctantly open to offers as an imminent relocation forces a quick sale. PM me for air-plans, layout etc.

[0Mix1up]

In that case I'm the proud owner 525 cu.m. of top quality air with great 360 degree views over Jomtien from the equivalent of the 76th Floor. If anyone's interested I am reluctantly open to offers as an imminent relocation forces a quick sale. PM me for air-plans, layout etc.

i'll just fly thru and have a look

ok?

[jimmybkk]

Better make a booking - I'm anticipating a lot of interest in this one. BTW, sorry - no agents pls.