(Photo: 2Bangkok.com) |
(Photo: 2Bangkok.com) |
Sofitel Riverside - May
25, 2004
People often ask about this striking derelict property on the Chao Phraya
River. We have had news about it ready to post since August, 2003, but
we have been trying to verify rumors about the project--that BMA did
not give the final approval for the building or that it is sinking because
of shallow foundation pins. However, 2Bangkok.com has found no evidence
that any of these widely circulated stories are true.
The circumstances of the original abandonment of the project are unclear.
Since the project was suspended in 1996, a year before the economic
meltdown, there must have been something wrong with either the creditors
or the contractors who handled the construction. It should be noted
though that failed highrise projects were not uncommon even before the
1997 meltdown. This was mostly due to liberal loans given to novice
developers who were unable to complete projects.
Sofitel still managed to make a joint venture with Central Pattana (the
holding company of Central Group) to run the Central Lad Phrao Hotel
as well as the Hua Hin Railway Hotel (the building still belongs to
SRT, but Central Group and Sofitel have made a long lease with SRT).
(Thanks to Wisarut and Pas for contributing information on this project.)
(Photo: 2Bangkok.com) |
Hilton
to revive `ghost' into five-star - Bangkok Post,
May 25, 2004
The 32-storey property, designed with 550 rooms and managed
by Accor under the Sofitel brand, will be renovated into a five-star
hotel under Hilton International's Millennium Hilton brand...
Mr Pongsiri said the hotel was scheduled to open by the second
quarter of next year. He also insisted there had been no problem
with cracking or land subsidence at the site, as had been rumoured
for years.
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Former
Sofitel gets fresh funds - Knight Frank Research,
July 28-August 3, 2003
Amarin-led group to pump in Bt1.4 bn to revive project. The former
Sofitel Riverside hotel, left uncompleted before the 1997 financial
crash, will be revived after a new group of investors agreed to
inject Bt1.4 billion in fresh funds into the project. Its single
largest creditor, the state-owned Thai Asset Management Corp (TAMC),
said that after considering several bids it had picked Thai Real
Estate Restructuring mutual fund as the new investor group for the
hotel, situated on the Thon Buri bank of the Chao Phya River. The
new partner will inject new capital for the completion of the 32-storey
property. The contract with the new group, formed by Amarin Group
and foreign investors, was |signed earlier this month. Ten years
ago TWY Property Co opened the site for a 32-floor hotel with 550
rooms and three plaza towers in Klongsan District, facing the Royal
Orchid Sheraton Hotel on the Bangkok side. The project was 85 per
cent complete when it was suspended in 1996.
Hotel Sofitel gains reprieve
- Bangkok Post, July 24, 2003
The derelict Hotel Sofitel, a casualty of the economic crisis
located on a prime site along the Chao Phraya River, has been given
a new lease on life in a 1.4-billion-baht restructuring deal under
the Thai Asset Management Corp.
The Thai Real Estate Restructuring Fund, a venture between the Amarin
Group and foreign investors, was named the winning bidder for the
restructuring deal between the TAMC and TWY Property.
The fund will pay off debt worth 956.67 million baht to the TAMC,
with 813.17 million paid in cash on the transfer date. The balance
of 143.5 million baht will be paid in the form of 9.6 million units
in the Thai Real Estate Restructuring Fund.
A put option to sell the units is also offered at a price of 143.5
million baht. TAMC managing director Somjate Moosirilert expressed
satisfaction at the successful conclusion of the deal.
"I am happy to see the search for a new investor come to a
success," he said, adding that the high number of bids from
both local and foreign investors represented a vote of confidence
in the economy and the strong potential of TAMC assets for future
development.
TWY Property was established in 1992 to develop the Hotel Sofitel,
envisioned as a 32-storey, 550-room five-star hotel located on the
west bank of the river.
Construction work on the hotel ceased in 1996. The total new investment
to complete the project is estimated at around 1.4 billion baht.
Total debt owed by TWY stands at 2.94 billion baht.
(Photo: 2Bangkok.com)
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