Pacific Star diverts more foreign funds to Thailand
by Meagan Kelly (www.property-report.com)
Asian real estate investment firm Pacific Star International plans to bring in as much as US $400 million in foreign funds to Thailand.
The company has four real estate projects already underway in the country, and is studying two to three new deals to be made within the year.
Daniel Ross, vice-president for business development, says foreigners have expressed increased interest in Thailand’s property market.
“They are global financial institutions, banks and insurance companies, who aim high and are happy to invest here. Investing in Thai properties could produce an internal rate of return of 15%,” he said.
Its Singapore-based parent company, Pacific Star Group, manages five property funds including the US $250 million Asia Real Estate Prime Development Fund. The group had originally allocated 10 per cent of total assets to Thailand. That restriction is being loosened and the fund size could now jump to US $400 million.
Ross says the company is hoping to create new hospitality projects in prime destinations like Samui and Phuket, where wealthy Middle Eastern investors are looking to buy beach front property.
“Thailand is very beautiful and when they (foreigners) stay here they feel safe. Your politics is stable when compared to other countries in this region,” he said.
Pacific Star International’s current projects include a 41-storey condominium complex in Sathorn, and 195 unit mixed-use luxury development Eight Thong Lor. The company also has partnered with Asia Property Development on two developments that will begin selling in the third quarter of this year.