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King Power MahaNakhon buys substantial holding in multi-purpose block

Real Estate April 11, 2018 06:39

By The Nation

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King Power MahaNakhon Co Ltd, a subsidiary of duty free retailer King Power Group, has acquired assets of the MahaNakhon project from Pace Development Corporation Plc for Bt14 billion

Pace Development Corporation Plc (Pace) has sold some of its assets in the MahaNakhon development to King Power MahaNakhon Co., Ltd in a deal worth Bt14 billion. The deal is in line with the company’s earlier plan of putting MahaNakhon into Real Estate Investment Trust (REIT).

Pace will now focus on reducing debts, as well as speeding up construction of current residential developments to secure revenue stream.

Delicatessen chain Dean & DeLuca, meanwhile, will see further expansion worldwide. The company’s board of directors considered the transaction appropriate and most beneficial to the company and its shareholders.

Sorapoj Techakraisri, chief executive officer of Pace, said that Pace officially disposed of some assets in the MahaNakhon development, worth Bt14 billion to King PowerMahaNakhon Co. Ltd on April 10, 2018, in accordance with the resolutions of the board meeting held on March 28, The deal to sell a portion of the assets in the development is consistent with Pace’s earlier plan to put MahaNakhon into REIT upon project completion. The closing of the transaction at this time has allowed the company to reorganise revenue promptly.

The company plans to use revenue from this transaction, as well as the Bt3.894 billion revenue from capital increase shares in February 2018, for financial restructuring, making some funds available to repay debts and thus strengthen the company’s financial position. The added liquidity will also enable the company to build current businesses more efficiently and sustainably in the longer term.