Collapse creates rush for lehman's assetsValue of firm's assets falls making them more attractive

"In my view, I think at this time Lehman is undergoing a bankrupt¬cy process following a Chapter 11 filing. Lehman doesn't need to speed up the sale of its property projects to raise funds. As a result, Lehman's property assets may not fall below valuation," he said.

Meanwhile, some property agencies believe that Lehman's property assets in Thailand will drop between 20 per cent and 30 per cent in val¬uation.

Patima said a fall in the value of Lehman's property assets in Thailand will not affect similar assets in Bangkok because demand for property in the country, especially Bangkok, was still growing, espe¬cially for residential homes, office buildings, retail and hotel projects.

Knight Frank Charter (Thailand) managing director Phanom Kanjanathiemthao said the compa¬ny believed Lehman's property assets in Thailand would not be lower than its current valuation. This was because Lehman had now started its bankruptcy process, where its assets are legally protected by the Chapter 11 bankruptcy law in the United States. As a result, Lehman would not speed up the sale of its assets at prices lower than their valuation, he said.

If the company needs more fund¬ing, it may sell its assets at lower than their market valuation.

That would not effect other companies' property assets in the Thai market as demand for property projects, including residential, retail, office building, and hotel and resort, still recorded growth, Phanom said.

Earlier, Land & Houses, the coun¬try's largest property developer, prepared a Bt1 billion to Bt3billion war chest to snap up rental office build¬ings from Lehman Brothers (Thailand).

"This is a good time to negotiate the purchase of Lehman assets. Taking over the buildings would require less investment than on con¬structing new buildings. The value of Lehman's rental office buildings is estimated at Bt1 billion to Bt3 bil¬lion. We have no problem financing the purchases because the company has already completed the capitalincrease process," he said.