Pace Development regains control of Bangkok’s tallest tower
Pace Development has bought back its stake in the Bangkok’s tallest tower from Goldman Sachs and Apollo Global Management for THB10bn (€259.5m).
The listed company said its board had approved the purchase the 75-storey MahaNakhon building.
Pace’s CEO, Sorapoj Techaraisr, said the total amount of the purchase price will not exceed THB10.bn.
The company, however, said while the transaction had been approved, negotiations continue as the terms and conditions of the sale have not finalised.
Apollo and Goldman Sachs acquired the skyscraper and components in the development in January last year for US$235m (€190m).
They invested US$216m in equity and US$18.8m in financing in return for a 49% stake in a pair of companies behind the development of a hotel and retail portion of the tower.
That deal gave Apollo 49% of shares in a company known as Pace Project I and Goldman Sachs a 48.72% interest in a second company known as Pace Project 3.
Interests in these two companies were converted into a stake in the skyscraper.
Pace used the injection of equity to complete the project, which includes a hotel.
Pace also said today that it would be selling assets from the development to King Power International Group, a Thai company.