Liquor tycoon Charoen Sirivadhanabhakdi's buying spree seems unquenchable. His latest acquisition is a 10-rai riverside plot in Bangkok owned by Sermsuk Plc for about 1.8 billion baht.
Sermsuk, bottler of the Est soft drink brand owned by the tycoon, reported on Monday that Kasemsup Siri 4 Co, founded in January with registered capital of 100,000 baht, won the bidding for the plot on Charoen Nakhon Road by agreeing to pay 452,000 baht per square wah.
The company is wholly owned by Wattanapat Trading Co, a subsidiary of TCC Holding. Wattanapat Trading was established in 2010 with registered capital of 7.65 billion baht.
Sermsuk is 64.66% held by Thai Beverage Logistics Co, a subsidiary of TCC Holding.
Sermsuk chief executive Somchai Bulsook said in the report that Kasemsup Siri 4 was the only bidder to exceed the appraised prices of three property valuation companies and the Land Department.
The plot was formerly used as a distribution centre for Sermsuk's drinks business. Its value accounted for 13.8% of Sermsuk's assets.
Mr Somchai said capital from the sale of the plot would be used to repay a short-term loan and for cash flow.
The plot has a floor area ratio of 6-1, which allows a gross area of up to 96,000 square metres or up to 70 storeys. The highest potential for the plot will be a luxury condo with an initial return rate of 20-30%.
Unit prices will be at least 280,000 baht per sq m.
The previous transaction on Charoen Nakhon Road was a 10-rai plot opposite where luxury retail centre IconSiam will be located.