SINGAPORE (April 3): Frasers Centrepoint Ltd subsidiary, Frasers Property Holdings (Thailand), on March 31 entered into a JV agreement with TCC Assets to establish a JV company, One Bangkok Holdings (OBH) to build an integrated mixed-use development in Central Bangkok, Thailand.
OBH will serve as the master developer and will be involved in the development, design, construction, leasing of the leasehold rights of 167,000 sq m of land at the intersection of Wireless Road, Rama IV Road and Sathorn Road, Bangkok.
FCL says it envisages the development to include a retail component, office towers, residences, hotels and serviced apartments with an expected total gross floor area of approximately 1.83 million sq m, inclusive of carpark area.
In an announcement on Monday, FCL says it believes the JV between its subsidiary and TTC Assets presents the group “a rare opportunity to participate in the development of a mixed-use project which is strategically located in Bangkok central downtown”.
“The proposed joint venture is in line with FCL’s strategy to establish a presence and extend its development capability in Thailand. This creates an opportunity for FCL to diversify its investments geographically and complements its existing portfolio of assets,” says the group.
TCC Assets is part of the TCC Group, whose controlling shareholders are Charoen Sirivadhanabhakdi and his wife Khunying Wanna Sirivadhandabhakdi.
Their son Panote Sirivadhanabhakdi is FCL’s CEO and a director of TCC Assets.
Upon the establishment of OBH, Frasers Property Holdings and TCC Assets each have a respective effective shareholding interest of 19.9% and 80.1%.
Both companies have agreed to fund the capital in OBH of up to an aggregate of 35.8 billion baht (S$1.4 billion) inclusive of their initial subscription.
FCL intends to fund the project through a combination of equity, shareholders’ loans, bank loans and sale/lease proceeds from the project.
Shares of FCL closed flat at S$1.74 on Friday. — theedgemarkets.com.sg