Thai developers make inroads into post-Brexit Britain
Thai developers make inroads into post-Brexit Britain
Undersupplied London is a particular draw amid the sterling’s devaluation
Property developers in Thailand are jockeying for bargains following the June referendum that will see the UK leave the European Union, reports The Nation.
Sansiri has renewed its interest in cross-border investments in the UK, the company’s chief operating officer Wanchak Buranasiri revealed to The Nation. Singha Estate, on the other hand, is looking at acquiring three hotels in Britain with 70 rooms each.
Citing an anonymous source, The Nation reported that Singha Estate is planning an outlay of THB700 million (USD20 million) for two acquisitions in England and another in Scotland.
As with investors from other Asian countries, Thai developers are monitoring the freefall of the sterling with rapt attention following Britons’ vote to “Brexit.” The depreciation has eased the acquisition of British hotel assets at 10 percent below the market rate, Singha Estate chief executive officer Naris Cheyklin said.
The pound has plunged 14 percent against the baht, as of August 23.
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Two weeks after the referendum, CBRE Asia Pacific registered an increase in inbound inquiries for property investments in London from Asian high-net-worth individuals and family offices. Henry Chin, head of research for the real estate agency, then told Reuters that Asian buyers still view “London as a safe destination for property investments” despite the Leave campaign victory.
Speaking with The Nation, Knight Frank Thailand managing director Phanom Kanjanathiemthao said that post-Brexit Britain allows for greater bargaining power for purchases. His advice, however, is to take a more measured approach to UK investments.
“Of course, today’s price trend has not shown a great reduction in prices,” Kanjanathiemthao explains. “The short-term trend will be much clearer within the next three to six months.”
London’s residential market is still known for being undersupplied, he noted, a condition that spurred Sansiri to choose the city for its first overseas condo project in 2011.
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Source: Property Report