King Power to buy MahaNakhon in Bangkok
April 17, 2018 - Sathon District
Thailand’s luxury property builder Pace Development sold key parts of Bangkok’s tallest skyscraper MahaNakhon Tower to domestic duty free retail company King Power.
Under the agreement, Pace Development is selling land, the 154-room Bangkok Edition hotel, the tower’s observation deck, the MahaNakhon Cube retail building, interiors, operating licenses and related contracts to King Power MahaNakhon, a newly established company by Thailand’s largest travel retailer.
The deal is worth around $450 million. According to King Power CEO Aiyawatt Srivaddhanaprabha, under the proposed terms, the 77-storey tower would be renamed King Power MahaNakhon, although this remains a topic for discussion with the remaining owners, particularly investors in the Ritz Carlton Residences which are another substantial part of the skyscraper and are not part of the deal.
Pace Development is carrying a high debt burden from the realisation of the MahaNakhon tower and other prime real estate projects, as well as its purchase and expansion of high-end grocer Dean & Deluca in Thailand, Japan and the US.
MahaNakhon is located on Narathiwas Road in Bangkok’s Sathorn district and formally declared completed in August 2016. It exceeded the Baiyoke II Tower to become the tallest building in Thailand at a height of 341 meters.
However, as of April 2018, access to the main building was still not possible, with the developer stating that the observatory will be opened “soon.”
skyscraper, tallest building, commercial property