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Published on July 23, 2007

Bangkok Land (B-Land) is selling off large parts of its property in Muang Thong Thani, including office buildings, condominiums and vacant land worth about Bt4 billion, to raise cash for investment.

Paul Kanjapanas, a director of the company, which was established by the Kanjanapas family, said Bangkok Land had been in exclusive talks with a number of parties who are interested in buying land and buildings inside Muang Thong Thani, originally meant to be a 4,000-rai satellite city.

The move is part of a long-term development plan, he said.

Paul added that the group had completed many big projects at Muang Thong Thani, including Challenger Hall, Impact Arena and a condominium.

"We're committed to continuing with new investment as well as new business," he said.

With the success of Impact Arena and Challenger Hall in recent years, Bangkok Land has recouped some of its former glory. Before the 1997 economic crisis it was the country's biggest land-developer with the largest land bank, accumulated cheaply some 30 years ago.

In April the board approved the sale of a stake in subsidiary Impact Exhibition Management for US$250 million (Bt8.4 billion). In June it approved a capital increase of Bt10.1 billion. While some of the proceeds will be used to retire loans, the rest will be reserved for working capital.

While not going into the details of the planned investments, Paul said the group would build a 400-room, four-star hotel at Muang Thong Thani early next year, costing Bt600 million, excluding land.

As part of its efforts to raise funds, the company is negotiating with Kasikornbank to sell one of its industrial-park buildings at Muang Thong Thani for approximately Bt1 billion. The parties are expected to conclude the deal very soon.

The bank plans to use the building to house its new IT system and back office work such as a call centre and support units.

Bangkok Land is also in talks to sell the University of the Thai Chamber of Commerce a plot next to Muang Thong Thani for close to Bt1 billion. The university needs at least 100 rai for a new campus with academic buildings, a sports complex, entertainment, shopping and a dormitory, though it is also looking at Bang Na and Lat Krabang.

The firm has sold one of its industrial-park buildings to True Corp for Bt1 billion. True will renovate the building as its second base and expects to move 50 per cent of employees there from True Tower on Ratchadapisek by early next year.

Bangkok Land is also renovating its residential complex Lake View, near Muang Thong Thani, for sale. The 100 luxury condo units will be available in the next two months.

Bangkok Land has also put its 2,000-unit Popular Condo on the market at a low price, and more than 1,000 units have been sold. The next lot of condos will be priced higher than Popular Condo as it has a better location, with a link to the lake.

As the managing director of Impact Management, Paul said the company would focus more on small events such as weddings, parties and MICE (meetings, incentives, conferences and exhibitions) to utilise the many meeting rooms at Muang Thong Thani.

"We are looking at business meetings of 50-150 people to generate revenue of more than Bt1 billion a year," said Paul.

On June 28 Bangkok Land reported to the Stock Exchange of Thailand the resolutions of the board of directors regarding the capital increase and the allotment of newly issued shares. The company's board approved the increase of the registered capital of the company from Bt17 billion to Bt27 billion by issuing a billion Bt10 shares.

Suchat Sritama

The Nation