Swire Properties has acquired a 40 percent interest in a residential development site in central Bangkok for THB 2.4 billion ($73 million), with the Hong Kong-based developer making good on a pledge to beef up its pipeline of projects in Southeast Asia.
The acquisition on Wireless Road in the prime Lumphini subdistrict marks Swire Properties’ first real estate investment in the Thai capital, the HKEX-listed builder said Wednesday in a release. The seller of the stake was fellow Hong Kong property major HKR International, chaired by Victor Cha.
Swire Properties plans to develop the site into a luxury condominium project in partnership with City Realty, a local developer controlled by the Sophonpanich family behind Bangkok Bank and Bangkok Insurance.
“We are very excited to be entering into the residential market in Bangkok,” said Swire Properties CEO Tim Blackburn. “Bangkok is currently one of most exciting emerging markets in Southeast Asia and we see significant potential for quality, high-end residential properties in the city.”
The Bangkok site spans 12,666 square metres (136,335 square feet) along Wireless Road (aka Witthayu Road), a leafy boulevard home to the US and Vietnamese embassies, the All Seasons Place commercial complex and the five-star Athenee and Conrad hotels. The luxury project will boast open views of Lumphini Park and Benjakitti Park to Wireless Road’s west and east.
“This is a rare opportunity to develop a freehold site within the core area of Bangkok and, working closely with City Realty, a reputable partner with invaluable local experience, we are confident that we will be able to develop a new landmark in Bangkok,” Blackburn said.
Swire Properties, the real estate arm of centuries-old trading group Swire Pacific, last year launched a HK$100 billion ($12.7 billion) investment plan aimed at expanding its project pipeline in Hong Kong, mainland China and Southeast Asia.
City Realty acquired the Wireless Road site more than two decades ago and sold a 49 percent stake to HKRI in 2010, according to the Bangkok Post. HKRI previously developed the Grace Ivory Condominium (also known as the Sukhothai Residences), a 41-storey luxury tower on Bangkok’s Sathorn Road, south of Lumphini Park.
Wired for Development
Swire Properties’ proposed project is a short walk up Wireless Road from a redevelopment site acquired by a joint venture of developer Hongkong Land and Thai retail giant Central Group.
The JV partners bought the former British embassy site at the corner of Wireless and Phloenchit Roads in 2018 for more than £420 million ($595 million), with plans to develop a mixed-use project linking to Central Embassy, a high-end shopping complex and hotel adjacent to the site.
Central Group purchased one-third of the embassy’s then 12 acre compound for $95 million in 2006, after the UK foreign office put the site on the market the previous year. The parcel was redeveloped into Central Embassy, which displays Chanel and Gucci and operates the Park Hyatt Bangkok.
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