Japanese Funds Pleased with High Returns Successful Investments in Altitude Unicorn Condominium
Altitude Development Company Limited, a leading comprehensive property developing corporation, with ‘Creed Group’, the Japanese real estate investment fund management group, is pleased to announce Creed’s success in entrusting their capital to the joint venture project that focuses on developing the condominium project, ‘Altitude Unicorn Sathorn-Tha Phra’. This project has already achieved returns on par with pre-Covid-19 period well ahead of schedule. The proportion of units sold and ownership has already been transferred currently exceeds 60% and this number is expected to rise to 75% by the end of 2022. Consequently, Creed plans to build upon the success in other projects in Altitude’s pipeline, while Altitude Development is gearing up to get listed in the Securities Exchange of Thailand by 2023.
Mr. Chayaphon Hunrungroj, Chief Executive Officer of Altitude Development Company Limited, a leading comprehensive property developing corporation, revealed that the widespread prevalence of Covid-19 infections over the past two to three years contributed to a slump in the property industry. Nevertheless, Altitude Unicorn Sathorn – Tha Phra, a modern and unique condominium project worth more than 2.5 billion baht, stood out despite the market slowdown given its popularity and warm welcome. The condominium was jointly developed with the highly experienced Creed Group Private Equity Fund from Japan under the name, Altitude Creed Talad Phlu Company Limited.
Altitude Unicorn Sathorn – Tha Phra is one of the few rare projects whose unit prices continued to rise over the past three years in step with consistent new unit sales. The property situated on a high value location just 0 metres from BTS Talad Phlu is replete with a wide array of facilities and the function-based designs of each unit meets the lifestyle requirements of young urban dwellers.
To date, Altitude Unicorn Sathorn – Tha Phra has already begun transferring ownership to its buyers amounting to more than 60% of total units. The company is confident it will be able to completely transfer ownership of all units sold by the end of the Third Quarter of 2022. As new units are still being sold, the proportion of total ownership transfers is expected to reach 75% by year-end. This target will require less than nine months since the project’s first unit was transferred to buyers. This upsurge in ownership transfers paralleled the easing of Covid-19 figures and the opening of the country to welcome foreign visitors thereby creating a positive effect in reviving the property market.
At the same time, the chosen financial strategies together with the success of the project enabled the partners to close the private equity fund that developed Altitude Unicorn Sathorn – Tha Phra even before all the purchased condominium units have been completely transferred. This meant that the Japanese private equity fund received its annual investment returns on target as planned, while the Altitude received higher than expected revenue and profits. These figures will be reflected in the company’s improved financial standing in the Third Quarter of 2022, as it is expected to see greater liquidity after assets from this property, previously jointly invested, is 100% transferred back to Altitude Development. These projections are already feasible on the basis of the inventory financing value of the backlog alone.
“Creed Group received high returns on their investments on par with the period before Covid-19, even though many other private equity funds that invested in condominiums during the same time as our company, from 2018 – 2019, faced severe repercussions or have yet to receive payment. These circumstances were a result of the pandemic induced condominium market slowdown which led to [other operators] postponing both construction and sales,” Mr. Chayaphon said.
Creed Group is currently evaluating the prospects of making additional investments in Altitude’s upcoming projects since Altitude demands all joint investors to participate from early days at the project development level. This business model allows participants to expand their network of partners both horizontally and vertically across many properties. Creed’s keen interest to make more investments is also greatly due to its confidence in the strength of Thailand’s economic infrastructure and foundation given the nation’s resilience and effectiveness in dealing with present challenges. This becomes especially clear when Thailand is compared against other South Asian and ASEAN countries that Creed Group had previously invested in namely Vietnam, Indonesia, Cambodia, Laos, Malaysia, and Bangladesh.
Other projects in Altitude’s portfolio range from condominiums like Altitude Symphony Charoenkrung and One Altitude, to detached homes and town homes such as Altitude Craft Bangna, Altitude Forest, and Altitude Mastery Sukhumvit.
Altitude Development is also concurrently working steadily towards its goal to getting listed in the Stock Exchange of Thailand (SET). Preparations are in order to submit all the necessary documents to file a listing application before the middle of 2023, and the Company expects be listed within the same year.
