Sansiri signs MoU with Pace Development for MahaNakhon project

Real Estate November 08, 2017 10:32

By The Nation

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Sansiri Plc has signed a memorandum of understanding (MoU) with Pace Development Corporation Plc and Pace Project Two Co Ltd (Pace Development Group) for purchase negotiations and due diligence ofNimit Lang Suan project and 53 condominium units of Ritz-Carlton Residences Bangkok in the MahaNakhon building project, according to the company’s report to the Stock Exchange of Thailand late on Tuesday.



 

 

 

 

In the purchase of the Nimit Lang Suan project, Pace Development Group will receive the project land and building under construction, contracts with contractors, contracts with customers, and permits in relation to the project. The purchase of condominium units of Ritz-Carlton Residences Bangkok project will be made when all construction of the MahaNakhon building project are completed and fully open.

The preliminary terms of purchase of the above assets are subject to key conditions, like the company’s satisfaction with the due diligence, an approval from the board of directors of the company, approval from the board of directors of Pace Development Corporation Pcl, including consent of any related third party.

Under the MoU, the company has to make a refundable deposit amounting to 5 per cent of the indicative purchase price under an escrow arrangement, and be given exclusive rights to conduct due diligence and negotiate the purchase of the assets. The transaction has an uncertainty where the indicative purchaser price as well as the terms and conditions contained in the MoU are not final and subject to changes after the due diligence results and the negotiations of the parties. The company will further inform any key progress after completion of due diligence. It is expected that the due diligence will not take more than 60 days from the date of the execution of the MoU.