Bangkok’s MahaNakhon Tower receives huge cash injection from US
A milestone for Thai real estate
Pace Development entered into an agreement with alternative investment management firm Apollo Global Management for a stake in MahaNakhon. The US-based company will invest approximately THB 8.4 billion (USD 235 million) in Thailand’s tallest building. This investment is seen as a significant milestone in Thailand’s real estate industry with the well-known international private equity firm entering into the market.
Philip Mintz, Head of Apollo’s Real Estate Business in Asia says in a press release that the group is happy for the opportunity to invest in such a well-constructed trophy tower. He adds, “We look forward to working with Pace for many years to enhance the value of what we believe is one of the best real estate assets in Asia.”
The agreement will see THB 5.9 billion (USD 165 million) of funds managed by affiliates of Apollo invested into the project. US-bank Goldman Sachs is expected to invest THB 2.5 billion (USD 70 Million) in the project. The companies will hold 49 per cent in The Bangkok EDITION Hotel and the MahaNakhon CUBE along with the tallest observation deck and rooftop bar in Thailand.
The investment is another sign that confidence in Thailand from international investors is on the rise. Apollo’s investment includes a stake in the future and current income generating assets in the MahaNakhon. The project, which held a massive launch last year, has garnered interest from foreign firms wanting to be a part of the hallmark development.
“It is a great honour for us to have funds managed by affiliates of Apollo, one of the world’s leading alternative investment management firms, as our strategic business partner investing in our award-winning MahaNakhon development, Sorapoj Techakraisri, CEO, PACE states. “I am pleased to say that this investment will add value to maximize the income generating assets of the company. Further, with Apollo’s extensive experience and financial strength, Pace will be able to enhance and expand our investment both locally and internationally.”