The Regent Residences, Bangkok

[corkscrew]

You see I hailed from Hong Kong, in my view Bangkok is very

similar to Hong Kong in the old days. Many foreigners in Hong Kong who

have been in the city for more than 30 years have regrets that they didnt

buy apartments in HK because they didnt trust Hong Kong property developers and

chose instead to rent. Now, despite the slump, HK apartments

cost a fortune to own. For some apartments with basic furnishings in

the New Territory for example will cost Bt400,000-500,000/sq meter easy.

Hence, some Bt100,000/sq meter Bangkok apartment with a name like the

Regent and very nice furnishing is a truly affordable luxury.

I believe Bangkok in the foreseeable future will move to a stage where

Hong Kong is now. It would be a mistake if you miss riding the growth.

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I completely agree with you..I've only been based in Bangkok for 10 years and regret that I didnt buy (instead of rent) much much sooner (Ive bought a few units in the last few years and buying another soon)...although there is no guarantee for the future...over all the future is bright....I think the trick is to buy the best location (and of course, quality construction and maintenance)....

I also understand that in HK, the most you can buy is on a long term leasehold basis (not fee simple absolute freehold basis)..is that right?....Here in BKK you can buy on freehold basis...(probably not important practically, but important for re-sale... at least here in BKK)..

I attended the HUGE 1997 handover party in HK and stayed at a friend's condo (both top leval execs) in Mid-Levels... modest in size but high floor and very nice view of harbor (BUT MASSIVELY EXPENSIVE)..dont know how you guys do it...no wonder everyone is frantically earning money and rushing about there like people on "speed".....also no wonder there were so many HK buyers in the Athenee Residence (even in light of its highest costs per sq meter in BKK) when I visited the sales office!

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I sprung for it! I bought in Athenee.

[Raptor7]

Thank you for the warning. Indeed, there are many dodgy property developers.

There are those listed developers with major shareholders FRONTING every land purchase for their condo development. Grande Asset is not doing this as far as I know for their Regent Residence and Trendy Condominium (next door to Regent Residence). Grande Asset bought the land from Ambassador Hotel which is under debt restructuring and being screwed by Bangkok Bank.

The financing of Regent Residence is under a committed facilty by Krung Thai Bank which aslo offers financing up to 120% of the condo price for individual buyers. 20% for decoration of the condo. The term is up to 30 year. While the financing for Trendy Condo is undertaken by Bangkok Bank. Trendy is 70% finished.

I happened to be a stockbroker and I am just checking logically about what you said:

1. Grande Asset belongs to two major shareholders: Pongphan SAMPAWAKOOP (the Chairman of Grande Asset) and the NARULA family. NARULA got into Grande Asset in 2002 by buying the shares of Hong Kong's FURAMA HOTEL in the company. Both of the families hold the remaining shares not offered to the public, which is probably around 70% of the enlarged shares. I am sure the NARULA family will be pissed if Pongphan dumped his shares RIGHT AFTER IPO.

Not only that, Pongphan is also killing himself by doing so, afterall how much can he dumped in the market? After all he has perhaps 40% or so of the enlarge shares; he would ruin the price of his remaining unsold shares by dumping say 3% or so, right after IPO.

2. It does not make sense to dump the shares RIGHT AFTER IPO.

Afterall why didnt he sell the shares AT THE IPO? He could do this.

3. Sharelockup and monitoring by SEC

Major owners' shares not sold to the public will be subject to sharelockup anywhere from 6 months and longer. SEC has been quite strict on many occasion. recent example includes: N-PARK which is under various scruttiny by SEC with insider trading charges. Afterall SEC in Thailand can do this, they can see the fund movement in the banking sector and I heard they also tap telephone conversation.

Grande asset IPO in February 2004 was at the right time. SET was at its peak. And I believe with many IPO cases in Thailand, many fund managers and retail investors just want to have a "Free Lunch," they all subscribe to the IPO which are usually offered at 20% discount to other property shares, and most of the shares subscribed in the IPO were dumped BY these PUBLIC INVESTORS in the first day of trading.

I sincerely recommend that you don't buy anything 'off-plan' being developed by Grande Asset. They are a dodgy bunch and financing for the project must be questionable.

After their recent share flotation, their Chairman dumped his shares immediately on to the market which basically screwed all of his new minority shareholders - as the share price fell by 70%. (Luckily I didn't own any).

I'd be highly sceptical that they will deliver what that nice pavilion in Sukumvit is promising !!

If you want to write to me privately to verify what i've said, feel free.

Sauron

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wow, just reading back on an old 2004 post warning from "Eye of Sauron" not to buy anything off plan by Grande Asset.....SO TRUE.....

[mauiguy90]

...Please let me know where I can buy Bt50,000/sqm a new high-rise luxury condo in a 5-star hotel complex, I would like to buy it.

Let me know too!!! (i.e. don't hold your breath). 80,000 baht per sq. m. is in the lower range of what you have to pay for a luxury place in a good location.