Thai Beverage chairman looks to growing property portfolio here

April 13, 2007

Thai Beverage chairman looks to growing property portfolio here

By Aaron Chew


THE appetite of Thai Beverage chairman Charoen Sirivadhanabhakdi for Singapore property is as keen as ever despite a remarkable series of purchases recently.

The tycoon is said to be intent on adding to his already impressive portfolio of apartments and commercial buildings in Singapore. The problem is that there is not enough stock on the market.

Mr Charoen can partly blame himself for that given his string of deals, including buying 47 of the 48 units of Suites @ Cairnhill a day before a private preview sale.

He would have grabbed the lot in the Hoi Hup Realty project but for a law stipulating that foreigners cannot own all the units of a development.

Mr Charoen, who bought Intercontinental Hotel at Bugis Junction last year for about $250 million, is said to have paid $205 million for his Cairnhill development units. This amounts to around $2,550 per sq ft (psf).

It has also been reported that Mr Charoen bought four floors consisting of 16 units at the Orchard Residences condominium at Orchard Turn, an investment of about $135million or $3,600 psf.

Many of Mr Charoen's property investments are sourced by a firm he controls, TCC Land International.

Its president, Mr Chia Kwok Ping, was quoted by The Business Times yesterday: 'Interest in the hospitality sector is quite buoyant because of the integrated resorts coming up. The problem is there are no sellers.'

Property consultancy DTZ Debenham Tie Leung executive director Ong Choon Fah said Mr Charoen was among the growing number of foreigners investing in Singapore.

'A lot of people see good value in the residential market as Singapore gets more globalised,' she said.

Mr Charoen's wealth has been estimated at US$3.4 billion (S$5.2 billion), making him Thailand's richest man.

The son of an oyster omelette hawker, he started Thai Beverage when he was only 15 and now has a near-monopoly on whisky sales in Thailand.

A decade ago he launched Chang beer and has slashed rival Singha's market share.

Thai Beverage listed in Singapore last May after its plans to float on the Thai bourse were thwarted by protests from anti-alcohol groups in the predominately Buddhist nation.

Mr Charoen has been buying Thai Beverage shares but they have rarely passed the 28 cents offer price. They closed at 25 cents yesterday.

Mr Charoen's investments here will benefit Singapore, said Mr Jeremy Lake, executive director (investment properties) of property consultancy CBRE.

'There is always a positive impact on the market when a well-known and high-profile person makes a sizable investment,' he said.

CAIRNHILL BUY

Mr Charoen, who bought Intercontinental Hotel at Bugis Junction last year for about $250 million, is said to have paid $205 million for his Cairnhill development units. This amounts to around $2,550 per sq ft.