Local property commentator Bill Barnett, in his thephuketinsider.com blog, reported that the sale was achieved by BMTS selling its subsidiary Kamala Beach Resort & Hotel Management Co, which owned the land.
The buyer’s name has not been disclosed; all that was said by BTS was that the buyer is a Thai company.
The transaction was valued at B1.64 billion, which equates to approximately B3.6 million a rai. BTS said its book value was B1.24 billion, so it has technically reaped a profit of B400 million on the deal.
BTS had previously planned to develop the site with both property and a hotel to be run under hospitality group U Hotels.
“A portion of the site includes a prime beachfront portion on the Northern side of Kamala Beach and large inland piece near to the Swissotel (formerly Courtyard by Marriott). Next door to the ocean fronting side is the new Novotel which is moving towards completion,” Mr Barnett reported.
“Industry sources are viewing the transaction with interest given the high potential for both upscale hotel and residential property development on the land.”
Stock brokers saw the news as positive for BTS. Reuters quoted Thanachart Securities as saying, “Our concerns over [BTS’s] real estate business had eased since the company decided to slow down its investment.”
BTS shares jumped – an indication, perhaps, that investors in Thailand are becoming very wary of anything to do with land in Phuket.