Dubai: A Dubai-based businessman has invested Dh100 million in Thailand’s tallest tower, MahaNakhon mixed-use development, Gulf News has learnt.
The project is expected to be valued at 18 billion baht (Dh2.25 billion), or $640 million at completion in 2015.
“Thailand’s economy expanded rapidly in the fourth quarter of the last financial year, with the government reporting GDP growth of 18.9 per cent compared to the previous year,” Asghar Patel, Chairman of House of Patels group which has interests in real estate, financial services, transport and logistics.
”Besides, Thailand has a large middle class population who are gaining wealth that will support future developments. So, it is logical to invest in this growing economy,” he told Gulf News in explaining the rationale behind investing in Thailand.
His group, which has an annual turnover of $185 million employing 3,000 people across six companies, has acquired the project’s marketing and sales rights for the GCC and India.
MahaNakhon is a luxury mixed-use skyscraper currently under construction in the Silom/Sathon central business area of Bangkok, Thailand. Designed to fit into the Thai landscape with a pixelated facade, it will have the unconventional appearance of a glass curtain-walled square tower with a cuboid-surfaced spiral cut into the side of the building.
Upon its estimated completion in 2015, it will become the tallest building in Bangkok at 314 metres (1,030 feet) and 77 floors. Featuring hotel, retail and residences, 194 units of The Ritz-Carlton Residences, Bangkok inside the building are priced between around US$1,000,000 to $11,000,000, making it one of the most expensive condominiums in Bangkok.
“We are soon going to launch a marketing campaign in the UAE in April to promote investment in the tower whose value is expected to grow fast due to strong demand,” Patel says.
“Thailand is the second largest economy in Southeast Asia. It’s a newly industrialized economy and is heavily export dependent. In fact, exports account for more than two-thirds of its GDP – which currently stands at around $365 billion. The economy grey by 6.4 per cent last year and is expected to grow at around 5 per cent. The World Bank recognizes Thailand as “one of the great development success stories”. Tourism, a sector that’s rapidly rising in importance, contributes around 6 per cent to the economy,” he added.
Designed by German architect Ole Scheeren, partner of the design firm Office for Metropolitan Architecture; development partners of MahaNakhon include Thai company Pace Development Corporation PLC and multinational Industrial Buildings Corporation PLC.
House of Patels, which used to own Wall Street Exchange Centre, has sold its UAE operations to Emirates Post.
However, investment in the UAE real estate is also growing with strong returns, which might force Gulf investors to think twice to invest in Thailand and Far East, analysts say.