Tanayong plans Phuket project

Tanayong plans Phuket project


The property developer Tanayong Plc is forming a joint venture with a group of investors, which includes Hong Kong-based Winnington Capital, to develop real estate and hotels in Phuket.


The formerly high-flying developer and the original owner of the Bangkok skytrain, told the Stock Exchange of Thailand yesterday that it would hold at least 50% of the new joint venture.


The venture would have initial registered capital of approximately 1.2 billion baht, and would purchase about 300 rai in Phuket to develop a hotel, villas, and for other future projects.


According to a company statement, the 320-room, five-star hotel would cover 38 rai and cost 2.13 billion baht including the land value.


The new company would also develop 38 villas on a 36-rai site, starting in July, with an estimated value of 2.195 billion baht, including land. Land for future development would cover approximately 226 rai with a purchase value of 653 million.


For the land purchase, the joint venture will use cash from equity. Funds to build the hotel would come from a combination of cash, project loans and internal cash flow.


The land purchase is scheduled before the end of June, with hotel construction due to start by July and to be finished in June 2009. Construction of the villas is also scheduled to start in July and to be completed in September 2010.