While Keppel Land says that it is reviewing its presence in Thailand, City Developments Ltd (CDL) and CapitaLand said they are taking a long-term view on their operations and expressed full confidence that the country’s fundamentals will eventually prevail in the long run.
The exposure of the three Singapore-listed property developers in Thailand’s property market is relatively small compared to their huge asset size.
“We will review our presence in Thailand and continue to monitor the situation closely. In the meantime, we will maintain our marketing activities for our two landed housing projects – Villa Arcadia at Srinakarin and Villa Arcadia at Watcharapol,” said a KepLand spokesman.
 |
In Bangkok’s suburbs, two development projects are being undertaken by Keppel Thai Properties, KepLand’s unit in Thailand.
The other two developers are expressing more confidence about longer-term prospects in the country.
“We intend to continue looking out for opportunities to build our portfolio of trophy assets, purchased at bargain prices,” said a CDL spokesman.
“We are hopeful that some resolution will come about soon and Bangkok’s reputation as a good place for business and leisure will be restored.”
However, CDL, which includes London-listed Millennium & Copthorne Hotels, expects the group’s hotel chains in Thailand to “encounter challenging times in the near future” given the current situation of turmoil in Bangkok. The company has stakes in two hotels in Bangkok – the Grand Millennium Sukhumvit Bangkok and the Millennium Hilton Bangkok at Charoen Nakorn Road.
Additionally, the group also has interest in a 42-storey retail and office building – Exchange Tower – located at Sukhumvit Road, as well as in two properties in Phuket – the Millennium Resort Patong Phuket and the one beside Jungceylon Shopping Complex Phuket.
CapitaLand, on the other hand, has a presence in the country through its serviced residences arm – The Ascott – and residential property development business, under a joint venture with TCC Land Co.
TCC CapitaLand has ten residential projects in Bangkok – nine under construction and one fully sold and completed. TCC Land, which is part of TCC Group, owns 60 percent of the JV project.
“Our local partner is familiar with the ground and will be well equipped to manage operations amidst the current situation in Thailand,” said a CapitaLand spokeswoman. “We are positive that the business environment will continue to be favourable, despite occasional upheavals.”
The Ascott, which has been operating in the country for more than a decade, is Thailand’s largest international serviced residence owner-operator. It oversees eight properties in Bangkok with a total of 1,600 residential units located at South Sathorn Road and Sukhumvit Road.
The group does not have any equity interest in the three properties and has minority stakes in the other five. “Our business focuses on long-stay guests so the current situation has minimal impact on occupancy at our properties in Bangkok although we have experienced some room cancellations,” said Eddie Lim, Ascott’s country general manager for Thailand.
Mr. Lim added that although areas around the group’s serviced residences in the capital city are calm and properties are operating at a normal level, Ascott has “heightened security measures” and “a full contingency plan” in place.
“We hold a long-term view of our investments in Thailand and have confidence in the long-term fundamentals of the Thai economy,” he added.