Pace exits MahaNakhorn investment

Posted by Hipflat 28 Feb 2017

Luxury property company Pace Development has announced the successful closing of the THB 8.4 billion baht investment in MahaNakhon Development.

The exit will happen with funds managed by affiliates of Apollo Global Management, one of the world's largest alternative investment management firms, and Goldman Sachs, a leading global investment bank.

The investors will hold 49 percent in The Bangkok EDITION Hotel, MahaNakhon CUBE, the retail component of the MahaNakhon development and the tallest observation deck and rooftop bar in Thailand.

Funds managed by affiliates of Apollo have invested approximately THB 5.9 billio for a 34 percent stake, and Goldman Sachs has invested THB 2.5 billion for a 15 percent stake. The capital increase in PACE's two subsidiaries has already been registered.

Sorapoj Techakraisri (pictured left), the Chief Executive Officer of PACE said "The company is extremely excited with this investment which demonstrates the confidence that two preeminent global investors have in MahaNakhon.

"The investment will enable PACE to fulfill its vision in this world-class development as well as strengthen its equity position, greatly reduce the company's debt/equity ratio and enable PACE to expand its iconic DEAN & DELUCA business throughout the world".

Philip Mintz (pictured right), Head of Apollo's real estate business in Asia, said: "We believe that MahaNakhon is one of the most impressive skyscrapers in all of Asia. We are incredibly pleased with the quality of the development and, as importantly, with the quality of the PACE management team."

The MahaNakhon development is nearing completion and residents of The Ritz Carlton Residences, Bangkok, will begin occupancy in April 2017.

The CUBE is fully leased and the Edition Hotel, Sky Observation Deck and Experience, as well as rooftop bar will be ready for full operations in late 2017.

This story was written by Andrew Batt, Head of Content at Hipflat,com. Contact him with your own news, views and comments at [email protected]