Charn Issara sets aside $85.7m for hotel acquisitions in UK
SET-listed property developer Charn Issara Development Pcl is looking at acquiring two hotels in the UK at a budget of 3 billion baht ($85.7 million)
SET-listed property developer Charn Issara Development Pcl is looking at acquiring two hotels in the UK at a budget of 3 billion baht ($85.7 million) capitalising on pound depreciation dragging property prices, according to a report in Bangkok Post.
The firm is targeting properties with the size of 40 rooms each in the outskirts of London.
Chief executive Songkran Issara said, the acquisition would be made via Sri Panwa Hospitality Real Estate Investment Trust, in which Charn Issara and its subsidiary Charn Issara Residence Co together hold a 30.39 per cent stake.
Currently, the trust which has assets worth around 3 billion baht plans to boost the asset to 10 billion baht over the next five years. Two hotels, comprising Baba Beach Club Phuket and Baba Beach Club Hotel & Residence Cha-am Hua Hin with a combined value of 2.5 billion baht, will be sold to the trust next year.
The CEO said that it targets an increase in revenue in 2017 by 5-10 per cent from 3.41 billion baht last year. About 70 per cent of its revenue in 2016 was generated from residential projects and 30 per cent from office rents, hotels and services.
Since its establishment, Charn Issara has developed 50 properties worth around 50 billion baht. Its backlog worth 2 billion baht will be recognized this year, he added.
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