Bangkok assets of Lehman go up for bidding

By Somluck Srimalee
The Nation
Published on September 24, 2008

Though buyers are interested, some clauses are likely to pose difficulties

Thailand's Government Pension Fund, Land & Houses and sev¬eral property funds from Singapore and Europe have proposed to buy property assets of Lehman Brothers in Thailand, in all worth about Bt10 billion.

Sources said Lehman had appointed a property agency as its representative to sell its office build¬ings and 300,000squaremetre commercial area early this year. A final deal is expected to be cemented within three to six months.

The assets in Bangkok include, Pacific One, Pacific Two, ItalThai, Mercury Building and Muang Thai Patara.

The investors interested in bidding for Lehman's property include, Somporn Jungrungreangkit, who owns Thai Summit Group, and sev¬eral property funds from Singapore and Europe.

"We believe that Lehman's property prices will not be lower than their valuations because the agency took time to open bidding. Meanwhile, most of Lehman Brothers' property assets, especially office buildings and retail space, have recorded occupan¬cy rates of up to 80 per cent that will generate rental income for the buy¬ers immediately," a source said.

Meanwhile, TCC Land's director Soamaphat Trisorat said the proper¬ty agency is yet to offer Lehman Brothers' property assets to TCC but it does not have plans to buy new property right now.

"We are concerned about the global economy and Thailand's political and economic uncertainty. As a result, we have suspended our new investment at this time," he said.

One of the clauses enter bidding is the prospective buyer has to bid for all four assets in Bangkok. That means one buyer has to buy all the buildings.

"The agency will not separate the assets for sale. Those who want to buy, have to buy all the buildings," she said.

A number of property developers - especially property funds from Middle East and local investors - have shown interest in buying Lehman's property assets in Phuket and Koh Samui, sources said.

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Bangkok assets of Lehman go up for bidding

Though buyers are interested, some clauses are likely to pose difficulties

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