Expressing strong confidence in Thailand’s economic growth and the booming Pattaya property market, two Israeli investors will commit 2 billion baht to develop a waterfront project after spending 300 million baht to buy out its owner, the Israeli company Erland Land Co.
Kobi Elbaz, CEO and founder of Pattaya-based Tulip Group, said the group and UK-based Park Plaza Hotels completed the transaction last week.
The 5:50 joint-venture company Park Plaza Waterfront will clear all debts of the previous owner and will rename the site Park Plaza Waterfront Pattaya.
The project located on Bali Hai will have 52 floors with 100 hotel rooms and 315 condominium units. The joint venture will invest 600 million baht to develop the hotel and 1.4 billion baht for condominiums with sales of 2.4 billion baht.
Unit sizes will start from 40 square metres and will be priced starting from 85,000 baht per sq m or 120,000 baht on average. Sales will begin next month while construction will start in September and take three years.
“We have settled refunds with all former customers who bought at the project and we will start a new development from zero,” said Mr Elbaz. The group expects to have 50% in sales by the end of the year.
Eli Papouchado, chairman of Park Plaza Hotels, which will manage the property, said it would be a landmark development for Pattaya and an important part of the group’s portfolio.
“We are very excited to add Pattaya to our list. This project will be our first hotel in Asia,” he said. “It demonstrates our commitment to one of the most dynamic resort cities in the Asian region.”
Park Plaza Hotels currently has 25 Park Plaza hotels and apartment-hotels in 56 countries with 5,447 rooms.
The 12-year-old Tulip Group is currently developing the Centara Avenue Residence and Suites, Centara Grand Pattaya and Tulip Boutique Collection.