It will hold 19.9% in a joint venture that will invest in the project’s development.
Frasers Property Holdings Thailand (FPHT) and TCC Assets Thailand (TCCAT) set up a joint venture (JV) called One Bangkok Holdings (OBH) in order to jointly acquire and develop a leasehold site in central Bangkok into integrated mixed-use development One Bangkok.
According to an announcement, TCCAT and FPHT will have an effective economic interest of 80.2% and 19.8% in the project respectively.
FPHT and OBH will each have a shareholding interest of 19.9% and 80.1% respectively in One Bangkok Ventures (OBV) upon its establishment. FPHT will invest $136.1m in OBV, which will be funded progressively over the development period of the project.
Meanwhile, OBV will hold 45.5% of the project’s lessee company and TCCAT’s subsidiary, Kasemsubvadhana Company Limited (KSV). KSV, instead of OBH, will serve as the master developer of the project and will be involved in the development, design, construction, leasing and/or the operation of the project.
FPHT added that the project will use the expertise and experience of Frasers Property and TCCAT in the development and management of large scale integrated mixed-use developments. “To facilitate the development, design and construction of the Project, FPHT and TCCAT have decided to undertake the restructuring to enable KSV, the lessee of the Project leasehold site, to serve as the master developer of the project.”
Under the restructuring, TCCAT will hold 51%, OBV will hold 45.5%, whilst FPHT will hold 3.5% in KSV.