TGR plans Phuket hotel startup by end of year

The Bt1.65-billion hotel was expected to be operated by Jumeirah, a Dubai-based group - builder of some of the world's most expensive properties including Burj Al Arab, the Jumeirah Emirates Tower.

Construction of the hotel should start by the end of this year.

TGR was founded by Dilokpol Sundaravej and Edward Powis to build homes for the wealthy.

It purchased Po Bay, in Rate Island in Phuket province, for an estimated Bt700 million in 2004 for a private island development.

Dilokpol, managing director of TGR, said he holds 51 per cent of the firm and Powis holds the rest.

He plans to sell his stake to Jumeirah later to allow it to be the major shareholder and operator of the hotel.

Under BOI terms, foreigners are allowed to hold more than 50 per cent in Thai companies, said Dilokpol.

He said TGR had applied for BOI privilege last month and expected to obtain them in two months.

Jumeirah will also provide the project design and management.

Called Jumeirah Private Island, it will cover 175 rai on the island.

The project will include a "7-star" resort, a deep-water marina for big yachts and private villas.

Overall construction cost is around Bt5 billion. Work is expected to be completed between four and eight years, Dilokpol said.

Eight of the villas, he said, out of a total of 50, would be built for foreigners seeking a second home here.

"Real estate prices here are still lower than those in many countries. This was one reason why we created the villas," Dilokpol said.

TGR has signed purchase contracts with foreigners for the villas, accounting for 70 per cent of total value.

 Clients were expected to make payments in accordance with the progress made in construction.

If building is delayed, buyers can hold off payment, he said.

Buyers of the villas can buy leases to the property for 30 years per contract. The lease contract can be extended for another two 30-year terms.