Hua Hin Resort Developer Targets Thais

[george]

Resort developer targets Thais

HUA HIN : Thai Nordic Property Co Ltd, the developer of Black Mountain Resort and Country Club, plans to shift its target to Thai buyers as the foreign market has slowed due to the global recession, says managing director Jatuporn Cherbangkaew. He said the company would offer free furniture for Thai customers buying a condominium but it would not discount unit prices, which were now approximately 60,000 baht per square metre. It also hopes to draw prospective Thai and foreign customers with a golf tournament from March 26-29, with spending of 70 million baht.

Jatuporn: Free furniture for Thais

''Scandinavian tourists, Hua Hin's main market, have now come back as they are familiar with Thailand and Thai people but these buyers continue to put decisions on hold,'' he said. ''We hope the market will resume early next year.''

Since late 2003, the company has invested a total of around two billion baht to develop an 18-hole golf course, 74 condominium units worth 600 million baht and 15 pool villas with a sales value of 600 million. The market book value of the project is now estimated at four billion baht while that for a full development would reach 10 billion, said Mr Jatuporn.

Black Mountain is located on a 1,300-rai site that the company spent 300 million baht to acquire. It invested 200 million baht for infrastructure, 500 million for the golf course, 200 million for a clubhouse, 500 million for condominiums and 300 million for villas.

''We will put development of phase two on hold as the situation remains unfavourable,'' he said. The company will also pay back project loans worth 2.1 billion baht before seeking new funding of one billion baht for phase two.

Phase-two development would be like phase one, comprising an 18-hole golf course, condominiums and villas. Currently, the company has sold 30% of its 74-unit condominium and seven villas. In a normal situation, sales should be closed within one year after the launch, he added.

Thai Nordic Property is 70% held by Mr Jatuporn and 30% by Swedish investors. With a registered capital of 12 million baht, it has two subsidiaries: BMG Summer Club has capital of 33.4 million baht and is the developer of the condominium part; Black Mountain Resort has capital of 40.6 million and is the villa developer.

In 2003, Mr Jatuporn, who is also a lawyer, presented a written project proposal to Swedish investors via the Thai Swedish Chamber of Commerce after seeking hillside plots of more than 1,000 rai in Hua Hin.

The Swedish investor Stig Notlov provided the first lot of project finance worth 1.6 billion baht with an interest rate of 4-5% and a payback period of 10 years for development of phase one, which is 90% complete.

-- Bangkok Post 2009-02-12