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2nd-home Hua Hin (Thailand) current news: Pacific Star Group upbeat on Kingdom |
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26 Apr 2007 |
Asian real-estate investment company the Pacific Star Group plans to expand its business in the region, including in Thailand, in the belief that there is still room for strong growth.
The group, which established its headquarters in Singapore in 2000, sees the Bangkok branch as one office having potential, along with those in Kuala Lumpur, Shanghai and Beijing.
It also plans to open more offices in Bombay, Seoul, Tokyo and Sydney, Urasate Navanugraha, asset manager of Pacific Star International (Thailand), said last week.
Urasate believes Pacific Star's Thai unit will grow despite the Kingdom's political uncertainty and the economic slowdown.
"These problems are only short term," he said, adding that Thai interest rates have been decreasing, resulting in higher spending power for home-buyers.
The Thai unit of Pacific Star was registered last year. The company has been developing two high-rise projects with a combined value of Bt5 billion in central Bangkok.
The asset manager said the two projects were expected to launch over the next few months. "The company's focus is on quality and we target the high-end market," he said.
The local unit's assistant vice president Daniel Ross said the company was still looking for potential locations in central areas of the capital for its next projects.
"Developing any real-estate project outside the central Bangkok district is too risky," said Ross.
In the initial stage, the company, with a total of 15 staff, has operated by developing property projects, which is one of its five areas in the property business.
The other four are providing direct investment and fund management, asset management, real estate investment trust (REIT) management, and property management.
Ross said Pacific Star International was allocated funds by its parent company from a pool of regional resources.
Recently the group was successful in launching its ¤500-million (Bt22 billion) Asia Real Estate Income Fund, or AREIF, billed as one of the largest in the region.
Proceeds from the fund will be invested in prime properties through Pacific Star Group.
Ross said that out of the ¤500-million fund, half had been allocated.
In addition, the group is launching the ¤600-million Islamic Fund, to be raised from investors in Kuwait, Australia and China.
"Pacific Star mainly focuses in Asia as there are not yet as many competitors as in the US or European countries," said Ross.
He added in the future the firm planned to join with local partners to develop more residential projects, though he declined to disclose details.
Urasate, however, said Pacific Star's Thai unit should raise several funds over the next three to five years when there is a response from the market.
Urasate and Ross are two of the four executives at Pacific Star International (Thailand). Urasate, who is responsible for asset management, has seven years' experience in business planning at Standard Chartered Bank in Thailand.
Ross has worked for JP Morgan in London, the Stock Exchange of Thailand, and the boutique investment-banking firm Mullis Capital in Bangkok.
Pacific Star as group now has a total of 120 staff regionally and enjoys transactions of Bt70 billion to Bt80 billion annually.
Monday April 23, 2007 - The Nation
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