Rachatanee invests in koh samui

Rachatanee Group, a property arm of Boon Vanasin, is increasing its investment in Koh Samui, Surat Thani province, in the first half of the year by taking over existing residential projects from foreign investors who are facing legal problems. The projects are worth up to Bt4 billion.

The group also plans to take over residential projects comprising incomplete projects and undeveloped land of about 200 rai worth up to Bt600 million in the second half of this year, group chairman Boon Vanasin said.

"A number of foreign investors who bought land to develop residential projects in Thailand through their nominees have decided to sell their projects to Thai investors, after the Thai government became stricter with foreign investors, following the Foreign Business Act at the end of last year. We have decided to increase our investment in this location because we see more foreign buyers who want to buy a second home in Koh Samui," Boon said.

At present, Rachatanee Group has residential and hospitality projects worth up to Bt10 billion on land of about 100 rai in Koh Samui. The company has sold 80 per cent of the first phase of its project worth Bt3 billion and hopes to sell the rest by the end of the year. The first phase will be delivered to customers next year.

The group also has five residential projects worth about Bt1 billion in Phuket, managed by Boon's son.

"Our business will focus on tourist destinations, especially Koh Samui and Phuket, targeting foreign investors who want to buy a second home or retirement home in these locations. As a result our business has not been affected by Thailand's economic and political problems," Boon said.

In Bangkok, the company has a few residential projects. One of them is the Arab Town project worth about Bt10 billion on Rama IX Road.

"We have to move Arab Town from its existing location to a new location, but remain on Rama IX Road. The existing location does not allow high-rise projects under the City Plan law. Construction at the new location will begin next year," he said.

Meanwhile, Piyavate Hospital, a hospital arm of the group, also plans to invest up to Bt1 billion overseas, especially in China and the Middle East in the next two years.

Boon said the company increased its overseas investments by signing contracts to build international hospitals in China. The company has also invested in renovating sections of existing hospitals in China.

Currently, Piyavate Hospital has invested in two hospitals in Beijing and Shanghai that will open in October.

The company will open three new hospitals in China next year.

"We have also invested in the hospitality business in China through joint ventures with Taiwanese partners to open four three-star hotels," Boon said.