Understand PACE’s IPO
PACE has been operating in the Thai real estate industry for almost a decade to create homes and properties that today and tomorrow’s consumers would want to live in. Setting many of the trends and standards for the hi-end property sector, PACE began with Ficus Lane, introducing Thailand’s first low rise boutique style resort concept condominium featuring a previously unseen 1/3 area of public facilities. The zero-defect standard Saladaeng Residences featured Central Atrium and Sky Lounge, followed by the ground-breaking architectural / interior design and legendary service standards of The Ritz-Carlton Residences at Bangkok’s tallest world-renowned mixed-use MahaNakhon development.
PACE’s success in marketing and clear vision for the future is why the company is regarded as the leader in luxury real estate development in Thailand. With the announcement of a corporate initial public offering (IPO) we joined PACE CEO Sorapoj Techakraisri to explain why PACE is taking this next step in development.
What is the progress of PACE IPO? When do you expect to be listed?
PACE has already appointed Asia Plus Advisory as our Financial Advisor for IPO since late 2012. We have already submitted documents for filing and are in the process of getting an approval from the SEC. We aim to launch our IPO and be listed in the SET within the first half of 2013.
Why IPO now?
In the last 9 years PACE has a proven record of creating developments that are of world-class design and quality, matching the demands and lifestyles of our clients. We aim to develop in a sustainable, long term way, so now we feel it is the right time as PACE is ready to expand and grow further with our new developments launching in 2013.
What will PACE do with the funds raised?
The majority of the funds raised will be used to develop our new projects. Specifically, part of the funds will be used to pay for the purchase of the freehold land plots in our new Langsuan and Huahin properties, and their subsequent marketing and development starting in 2013.
So what could investors expect to see in the near future?
Everything that PACE delivers whether in the past or the future reflects our commitment to deliver premium assets to satisfied customers and shareholders. Our developments have been recognized for their superior quality by both Thai and international investors. PACE’s next steps after our IPO are to launch the 2 new properties, and then after this to continue to seek opportunities in other Bangkok prime locations as well as holiday destinations around Thailand.
How would you describe the hi-end real estate segment which PACE is in?
PACE has been operating in the hi-end real estate sector since the company was founded and we are now the leader in this segment. The hi-end sector has unique requirements and we are confident in delivering products that fit with this segment. Our developments began with the desire to create homes that we personally believed in, and our confidence that this quality would provide a long term strong return on investment. We believe that the value of highest quality developments will substantially increase over time, and this belief is shared by our investors and buyers.
What does 2013 look like for the Thai real estate market?
For 2013, the hi-end property sector will continue to grow at a healthy rate with demand outstripping supply. The hi-end sector will also benefit from the upcoming ASEAN Economic Community (AEC) which will launch in 2015 as we expect to see more companies relocating to Thailand. There will be a surge of high-level executives moving to Bangkok and more foreign buyers looking to buy properties in Bangkok as their second homes. I believe the developers who specialize in this segment will benefit most from this movement.
So what can investors expect to see from PACE within the next 12 months?
Firstly, we will be opening the CUBE within 2013, which is an ongoing revenue stream from rental of space. We also have the final handover of additional units from Saladaeng Residences and Ficus Lane which are already sold and will be recognized as revenue within this year. For MahaNakhon, Langsuan and Huahin, the completion date is around 2015, but between then and now we will be strongly focused on continuing to set new benchmarks in pricing and sales rates, to ensure the long-term sustainable growth of PACE as a company.