The move by the brewery to enter the commercial property market is due to increased demand for income-producing properties in Thailand, according to the Asia Pacific Capital Markets Market View report for Q2 2011 by CB Richard Ellis (CBRE).
“This increase in demand was also seen with the recent sale of the Sofitel Silom Hotel to an owned associate of The Pioneer Global Group,” senior CBRE economist Eilidh Callum wrote in the report.
“The same 49.5-per-cent-owned associate that holds the Pullman Pattaya Aisawan Resort purchased the 469-room hotel for B2.01 billion, or B4.3 million per key.
“Current market interest goes beyond income-producing assets, with strategically located sites also sought after. So far this year City Virtue Ltd bought a three-rai site on Sathorn Rd from the French government and developers LPN and Supali have both bought land for residential development,” said Ms Callum.
The property deals in the capital mark show steady investment activity for Thailand despite a general lull in the Asian market in the second quarter.
A quarter-on-quarter decline of 39 per cent came as investors in Asia turned more cautious following the March 11 earthquake and tsunami in Japan and with the worsening economic picture in the United States and Eurozone, the CBRE report indicated.
However, Ms Callum said the lull was temporary and the market fundamentals remain firm.