INVESTMENT MARKET OVERVIEW | FOURTH QUARTER | 2009
THAILAND - BANGKOK
T
he overall investment market remained weak during the second half of 2009 due to the prevailing uncertainty about the political environment in Thailand. The current uncertainty on the approval of various environmental regulations for the Map Ta Phut Industrial Estate has cast a shadow over industrial investment in Thailand.
10%
8%
6%
% per annum
4%
2%
4Q 2009
3Q 2009
2Q 2009
1Q 2009
4Q 2008
3Q 2008
2Q 2008
1Q 2008
4Q 2007
3Q 2007
2Q 2007
1Q 2007
4Q 2006
3Q 2006
2Q 2006
1Q 2006
4Q 2005
3Q 2005
2Q 2005
0% 1Q 2005
Overall, the registered capital of applications submitted for investment approval fell nearly 6% year-on-year (YoY) from THB418 billion to THB393.2 billion during the period between January and November 2009 and there was a reduction in investment flow from foreign investors. For example, investment from Japan declined 44% YoY to THB54.6 billion, although demand attributed to local investors was relatively strong.
THAILAND 3M-BIBOR
Source: Bank of Thailand
Foreign Direct Investment (FDI) in real estate stood at THB6.89 billion in 3Q2009, representing a fall of 36% YoY. Going forward, the prospective role of FDI in the local real estate market will remain largely uncertain.
BANGKOK PROPERTY YIELDS 18% 16% 14% 12% % per annum
No new property stocks were listed on the Stock Exchange of Thailand (SET) during the second half of 2009. However, the Thanasiri Group became the first property developer to list on SET’s Market for Alternative Investment. The company specialises in landed housing projects in Nonthaburi and Phuket, and has a registered capital of THB255 million.
10% 8% 6% 4% 2% 0% 1Q 2004 2Q 2004 3Q 2004 4Q 2004 1Q 2005 2Q 2005 3Q 2005 4Q 2005 1Q 2006 2Q 2006 3Q 2006 4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009
Four new property funds were listed on the SET during the second half of 2009. TPARK Logistics Property Fund (TLOGIS) is worth THB1.533 billion and will invest in land, warehouses and cold storage facilities at Ticon Logistics Park. Sala@sathorn Property Fund has invested in the Sala@sathorn office building and is worth THB1.67 billion. The MFC Strategic Storage Fund was set up with a capitalisation of THB608 million and invests in cold storage facilities. The 101 Montri Property Storage Fund, worth THB603 million, invests in warehouse facilities.
Office
Residential
Retail
Industrial
Source: Colliers
MAJOR INVESTMENT TRANSACTIONS Development Office Sathorn Road Surawong Road Sala @ Sathorn, Sathorn Road Retail Central Plaza Pinklao, Boromarajajinani Road Industrial TICON Logistics Park - Wangnoi and Park - Bangna PCL Rama 2 Road, Muang
Floor Area (sq m)
Lump Sum Price (Baht million) (US$ million)
Buyer
2,706 3,976 2,924
1,000.00 500.00 1,649.40
29.98 14.99 49.44
CIMB Thai Bank Leenuttapong Family St. Louise Holding Co.,Ltd.
Undisclosed TCC Group Sala @ Sathorn Property Fund
185,671
5,680.00
170.27
Central Pattana PCL
CPN Retail Growth Property Fund
144,448
1,530.00
45.86
11,132
142.50
4.27
Note: US$1 = THB33.359
16
Seller
COLLIERS INTERNATIONAL | REGIONAL RESEARCH
TICON Industrial TICON TPARK Logistics Logistics Connection Property Fund North Agricultural Co.,Ltd. MFC - Strategic Storage Fund