STEC allots B7.79bn for Mor Chit project
Twin office towers to be built near BTS station
published : 12 Apr 2019 at 04:00
newspaper section: Business
SET-listed contractor Sino-Thai Engineering and Construction Plc (STEC) plans to spend 7.79 billion baht to develop twin office towers on an 11-rai plot near Mor Chit skytrain station.
Pakpoom Srichamni, STEC's president, said the office rental project, named Mo Chit Complex, will have twin towers with 36 storeys and a three-level basement, as well as a connecting path that will be a rooftop garden.
It will be connected to the BTS station by a skywalk.
The plot is owned by Mo Chit Land Co Ltd, a wholly owned subsidiary of SET-listed U City Plc. U City is a subsidiary of BTS Group Holdings Plc.
STEC's board of directors voted on April 5 to acquire all shares of Mo Chit Land (formerly known as BTS Assets Co).
The acquisition covered 29.55 million shares of Mo Chit Land with a par value of 27.25 baht per share, representing 100% of Mo Chit Land's paid-up capital.
The share value totalled 4.32 billion baht.
STEC signed a stock purchase agreement on April 10 with U City. The payment will have four terms over four years: 1.3 billion baht in November 2019, 1 billion each in November 2020 and 2021, and 1.02 billion in November 2022.
Funding will come from a variety of sources such as working capital, cash from operating business, loans from financial institutions and long-term loan debentures.
U City chief executive Piyaporn Phanachet said the company has to complete a release of land owned by Mo Chit Land from the mortgage with the financial institution prior to the share transfer.
"Previously, we planned to develop a project on this location," said Ms Piyaporn.
"Nonetheless, we believe this disposal will enable us to use the proceeds to fund other development projects and repay debts to financial creditors."
STEC shares closed on Thursday on the Stock Exchange of Thailand at 25 baht, an increase of 50 satang, in trade worth 918 million baht, while U shares closed at 2.46 baht, a gain of two satang, in trade totalling 40.7 million baht.