Source : Business Times - 25 Sep 2008
Catalist-listed Hup Soon Global Corporation Ltd, a seller of automotive aftermarket products, agriculture equipment, industrial supplies and material handling equipment in South East Asia, said on Thursday it was teaming up with a local partner to redevelop its Thai property in Bangkok.
Its Thai-based associate United Motor Works (Siam) Public Company Limited (UMWS) has entered into a joint venture agreement with Chewathai Limited (CWT) for the redevelopment of UMWS’s property on Surawongse Road in downtown Bangkok.
The joint venture company Chewathai Hup Soon Ltd (CHS) will be funded initially with THB 1 million equally shared between the partners.
UMWS and CWT will both own CHS equally.
As part of the terms of the joint venture, UMWS will inject the land into CHS while CWT will invest THB 84million cash - this will go towards funding construction costs with any shortfalls to be funded by bank borrowings.
The debt/equity ratio of CHS will be kept low, and this will allow it to ride out any uncertainties in the Thai property market.
The building to be redeveloped was acquired in 1955 and was used originally for the UMWS operations before moving its operations to its current premises in Rangsit, in North Bangkok, in 1994.
Since then, the building has been rented to third party tenants for office space with all tenancies expiring last year in preparation for a redevelopment. The building, which is currently vacant, sits on a 961.2 square meter freehold site, and is free from encumbrances.
The building will be redeveloped into a fully-furnished, luxury condominium block consisting of about 52 units ranging from 43 to 72 sqm called The Surawongse by Chewathai Hup Soon. Amenities include a swimming pool, fitness centre and multi-purpose room.
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