Raimon Land adds two plots

Raimon Land adds two plots

A digital rendition of the luxury condominium Shaa, which Raimon Land will take over from KPN.
A digital rendition of the luxury condominium Shaa, which Raimon Land will take over from KPN.

SET-listed developer Raimon Land Plc (RML) will have at least seven prime land plots worth more than 10 billion baht combined for future development of luxury condominiums after the company's board agreed to acquire two plots on Sukhumvit Road from KPN Land Co.

Four of the seven plots are within a four-kilometre stretch of Sukhumvit Road, between Asok and Thong Lor.

The prime property is a 3.5-rai plot on Sukhumvit Soi 38 that cost 2 billion baht, which will be developed into a luxury condo project worth 7.2 billion baht, according to a source in the property sector.

KPN Land, a property arm owned by the Narongdej family, will be handing off a one-rai site on Sukhumvit Soi 19 and a two-rai plot on Sukhumvit Soi 28.

Raimon Land on Thursday reported to the Stock Exchange of Thailand that its board of directors had resolved to acquire two plots from KPN Land with a total value of 1.57 billion baht.

The payment will be made with 500 million baht in cash and 597 million newly issued ordinary shares at a par value of one baht each, or equivalent to 14.31% of the company's paid-up capital after the increase in registered capital, with the offering price of 1.80 baht per share, equivalent to 1.07 billion baht.

The board also approved a decrease in Raimon Land's registered capital by about 915 million baht from 4.58 billion baht after deducting 914,840,957 unsold shares.

Raimon Land will also increase registered capital by 601.68 million baht by issuing newly issued ordinary shares in the amount of 601,688,520 shares at a par value of one baht each.

The increase is aimed at paying for part of the investment in KPN Land's assets and supporting an adjustment of rights under the warrants to purchase the ordinary shares issued and offered to its directors and employees.

"The environmental impact assessment might be delayed for the Sukhumvit 28 plot, due to objections from neighbours while it was owned by KPN Land, but Raimon Land wants it anyway," the source said.

Last year, Raimon Land bought a 797-square-wah plot on Sukhumvit Soi 26 for 1.7 billion baht, on which it will launch a 4.9-billion-baht condo project in the second half under a joint venture with Japanese real estate firm Tokyo Tatemono.

Raimon Land has also purchased a 1.5-rai site near the Ratchathewi intersection, where it plans to launch a super-luxury condo project worth 3.7 billion baht in 2019.

RML shares closed on Thursday on the SET at 1.46 baht, down four satang, in trade worth 148.1 million baht.

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