The Company was established on September 7, 2001 with an initial registered capital of THB 50,000,000 to undertake business investment in property sector. On November 28, 2001, a shareholders’ agreement was entered into for the shareholding in the Company in accordance with the following percentages:
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The Company was initially established to acquire and develop an incomplete condominium project namely “Water Cliff Condominium” of which construction had remained stalled as a result of the economic crisis and the problems in relation to the financial institutions since the year 1997, seeing an opportunity of generating a good return on investment once the Project was completed. After the acquisition of the Project, the condominium was renamed “Lumpini Place WaterCliff Condominium”.
Lumpini Place WaterCliff Condominium is located on a 5 rai-compound, comprising 4 high-rise 36-storey buildings with a total of 622 residential units. The Project has a total construction area and salable area of 80,000 m2 and 42,000 m2, respectively. The Project site is situated right on Ratchadapisek Road (Rama 3 section), approximately 200 meters from Ratchanonsee intersection (at Ratchapisek road and Narathiwat Ratchanakharin Road), surrounded by shopping centers and grocery stores e.g. Central Phraram 3, Tesco Lotus and Makro, etc. Originally, the Project was launched in 1994 by Thai Housing Development Company Limited and after approximately 3 years of development with an 80% construction completed and a 60% sales achieved, the financial crisis occurred in the year 1997, together with the closures of 56 local financial institutions, resulted in the finance companies providing debt financing to the Project being unable to continue with their credit supports and as a result, the Project construction was left incomplete.
In November 2001, the Company decided to take over the incomplete Project from the original owner for THB 320 million (by a combination of THB 50 million of equity and THB 270 of shareholders’ loan). To complete the construction, an additional THB 240 million of debt financing was acquired from Siam City Bank Public Company Limited and at the end of 2003, the Project construction was completed and the transfer of ownerships of 100% of the residential units was accomplished, from which a total of THB 1,450 million was generated as sales revenues.
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In December 2002, the Company acquired the plot of land adjacent to the first project site having an area of 1,248.7 square wah to develop a new townhouse project with a total revenue of THB 280 million. The Project is consisted of 28 townhouses, each of which has a 5.0 meter-width, 4.5 floors with a total usable area of 250 m2. Average selling price per unit is THB 10.0 million. Currently, the construction of the Project is fully completed with a total of 25 units sold.
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In July 2003, the Company purchased an additional of land of 386 square wah on Ratchapisek Road right in front of the first two projects to develop a 9 storey-residential condominium. The Project is consisted of 53 residential units, each of which has an area of 51-117 m2. The Project has been sold out at an average price of THB 50,000 per m2. The construction of the Project is scheduled to be completed allowing the transfer of ownership of the units to be made in October 2004. This Project has a total revenue of THB 255 million.
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Grand Unity Development Company Limited