"The value of our project on this site is worth Bt6 billion," he said.

While Cornick has kept the transaction confidential, market players said the grounds formerly housed the Royal Cambodian Embassy, which has since moved.

The purchase comes on the back of Raimon Land's successful securing of two powerful Gulf shareholders last month.

Raimon Land will today introduce key board members from Kuwait and Dubai to the local media.

The Gulf states have each bought a 24.9-per-cent stake in the publicly listed firm.

Meeting the press will be new directors, including Talal Jassim al-Bahar, who becomes chairman of the executive committee; Werner Burger, president of Kuwait's IFA Hotels & Resorts; and Richard Johnson, who heads Dubai-based Istithmar Real Estate.

"They will be active members of the new board," said Cornick, who admits that the Middle Eastern firms' combined Bt2-billion investment in Raimon will bring needed capital and valuable know-how to its half-dozen projects.

Until last month, the big question among property players was how Raimon was going to pay for all its huge prime developments, which include the Bt10-billion River estate opposite the Oriental Hotel and the Bt4.5-billion Northpoint site with two massive towers in Pattaya.

In late December, however, with the announcement of new shareholders from Kuwait and Dubai, that concern was quickly put to rest.

By having two powerful Gulf companies as major shareholders, Raimon was recently able to raise Bt2.7 billion in debentures in a private placement with Lehman Brothers.

The funds will be used to develop existing projects and the Rajdamri site.

Cornick said he expected the floor space at the Rajdamri project to "fetch Bt130,000-Bt150,000 a square metre, setting a new record for the property market".

Apart from the Rajdamri project, the 13-rai River and 12-rai Northpoint sites, Raimon's portfolio includes a 14-rai hilltop project on Kata Beachin Phuket and a 37-rai villa development next to the Amanpuri resort, also in Phuket.

Cornick said the value of all its projects was more than Bt25 billion.

As to the Kuwait-Dubai deal, he said Raimon "has no intention to make a tender offer for remaining shares".

IFA has a market capitalisation of more than US$1 billion (Bt35.2 billion) and specialises in tourism-resort projects, with many ventures with major firms such as Yotel in the United Kingdom and the massive Palm Island project in Dubai.

Istithmar is a privately owned equity firm. It is 100 per cent owned by Dubai World, which in turn is owned by the government of Dubai.

Itthi C Tan

The Nation