The Thai-Swedish firm Thai Nordic Property Co, the developer of the Black Mountain golf course and residential project worth a combined 10 billion baht in Hua Hin, is waiting to gauge the full impact of the global economic crisis before starting new phases including another 18-hole golf course and housing units.
"We are worried about the global crisis and not confident in financial transactions through the international banking system," said Mats Osterborg, the company's chairman.
"At a time when it is difficult to trust the international banking system, property is a good investment."
He also said the company was confident that Thailand's political problems would be resolved and that the country would perform well in the long run.
The company plans to monitor the market for the next 12-18 months and estimate demand before launching new phases. Currently, it is developing four five-storey condominium buildings in the first phase of its residential project near the golf course, which would be completed by February 2009.
Mr Osterborg said the company would complete the residential component to build prospective buyers' confidence. It would also spend around 100 million baht to improve and maintain the golf course annually.
Of the 76 condominium units, 30 have been sold. Unit sizes range 140 to 317 square metres at prices of 8.9 million to 26.8 million baht, while 15 villas priced at 48 million baht each, nine of which were sold, were completed recently.
Mr Osterborg said that about 70% of the customers were Swedish, 20% other Europeans and 10% were Thai. All foreign buyers are long-stay visitors. Foreign villa buyers can own houses and lease plots from the company as Thai laws do not allow them to own land.
Black Mountain Hua Hin is located on a mountainside plot covering 1,800 rai near Hin Lek Fai, 10 kilometres from Hua Hin town. Around 600 rai were developed for an 18-hole golf course and 14 rai each for villas and condominium buildings in the first phase.
The remaining 1,000 rai would be developed for another 18-hole golf course and residential projects. All would be completed within the next six years, said the Swedish lawyer.
Thai Nordic Property is a joint venture between a group of Thai lawyers and Swedish investor Stig Notlov, a former major shareholder of Byggmax, a large Swedish construction materials firm.
Mr Notlov, 60, has visited Hua Hin for more than 20 years and wanted to develop a golf course in Asia. At first he considered Phuket but after the tsunami in 2004 he turned to Hua Hin.
He decided to sell most of his shares in Byggmax to invest in Black Mountain project, starting with 100 rai. He is also a major shareholder of Zamgate Investment in Sweden, which supported Thai Nordic Property with a project loan to develop Black Mountain.
Source: Bangkok Post
Black Mountain awaits clearer picture
Black Mountain awaits clearer picture
Who is the happier man, he who has braved the storm of life and lived or he who has stayed securely on shore and merely existed? - Hunter S Thompson
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sandman67
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"At a time when it is difficult to trust the international banking system, property is a good investment."
yeah right mate.......of course all them empty properties locally, and house prices in the UK dropping by 20% this year and another predicted 15 to 20% next year is a good indicator of its time to buy a house.....
yeah right mate.......of course all them empty properties locally, and house prices in the UK dropping by 20% this year and another predicted 15 to 20% next year is a good indicator of its time to buy a house.....
"Science flew men to the moon. Religion flew men into buildings."
"To sin by silence makes cowards of men."
"To sin by silence makes cowards of men."
I have to say I was a little surprised that they didn't drop their prices. They actually went up for all the units except ground floor. It does seem to be overpriced at the moment and I thought the golf course wasn't quite as well maintained and manicured as it was in the summer. Maybe more use and a little less water?
This from today's Nation:
Thai nordic delays hua hin golf course to 2010
Thai Nordic Property, a property development based in Hua Hin, has delayed its second phase Bt2-billion 18-hole golf course and residential project to next year as its parent company has been hit by the effects of the global recession.
The Thai-Cyprus joint venture, in which Thai investors hold 70 per cent, with 30 per cent by Cyprus-based Zam Gate Investment, is engaged in condominium, villa, and golf course projects in Hua Hin through its two subsidiaries - Black Mountain Resort and Country Club and BMG Summer Club.
Zam Gate Investment is owned by Swedish investor Stig Notlov, a former major shareholder of a Swedish construction and materials firm. Thai Nordic Property's first-phase 18-hole golf course, named Black Mountain Golf Club Hua Hin, began construction in 2007 on 500 rais in Hua Hin.
The project value, including residential, amounts to about Bt2 billion.
CEO Mats Johan Osterborg said the company had to delay an investment in its second-phase golf course from this year to next year after beginning its first phase in 2007.
"The main reason is that the company's parent is facing the effects of the global economic recession, and Thailand's political uncertainty," he said. He added: "We believe that Thailand is the best destination for golf players because we can play golf for a whole year without a rainy season. As a result, we decided to invest to develop this project after being approached by Thai partner Jatuporn Cherbangkaew, in 2005," he said.
Osterborg said the company expected a return on investment of more than 10 per cent annually and to reach break-even point within 10 years.
But, the closure of Bangkok's two major airports has affected foreign visitors who wanted to come to see the project.
The company has now completed its first-phase 18-hole golf course project and expected to complete such other residential projects as luxury villas and condominium in March before the Black Mountain Master Open golf tournament, which will be held from March 23-29.
The company has currently sold 50 per cent of its 15-unit luxury villas and 30 per cent of the 74-unit condo project. Its major customers are foreign investors, who want to buy vacation residences in Thailand. Price ranges from Bt40 million to Bt48 million for a villa and from Bt8.9 million to Bt26.8 million for a condo unit.
In 2008, the company posted a total revenue of up to Bt60 million, most of which came from green fees only.
Thai nordic delays hua hin golf course to 2010
Thai Nordic Property, a property development based in Hua Hin, has delayed its second phase Bt2-billion 18-hole golf course and residential project to next year as its parent company has been hit by the effects of the global recession.
The Thai-Cyprus joint venture, in which Thai investors hold 70 per cent, with 30 per cent by Cyprus-based Zam Gate Investment, is engaged in condominium, villa, and golf course projects in Hua Hin through its two subsidiaries - Black Mountain Resort and Country Club and BMG Summer Club.
Zam Gate Investment is owned by Swedish investor Stig Notlov, a former major shareholder of a Swedish construction and materials firm. Thai Nordic Property's first-phase 18-hole golf course, named Black Mountain Golf Club Hua Hin, began construction in 2007 on 500 rais in Hua Hin.
The project value, including residential, amounts to about Bt2 billion.
CEO Mats Johan Osterborg said the company had to delay an investment in its second-phase golf course from this year to next year after beginning its first phase in 2007.
"The main reason is that the company's parent is facing the effects of the global economic recession, and Thailand's political uncertainty," he said. He added: "We believe that Thailand is the best destination for golf players because we can play golf for a whole year without a rainy season. As a result, we decided to invest to develop this project after being approached by Thai partner Jatuporn Cherbangkaew, in 2005," he said.
Osterborg said the company expected a return on investment of more than 10 per cent annually and to reach break-even point within 10 years.
But, the closure of Bangkok's two major airports has affected foreign visitors who wanted to come to see the project.
The company has now completed its first-phase 18-hole golf course project and expected to complete such other residential projects as luxury villas and condominium in March before the Black Mountain Master Open golf tournament, which will be held from March 23-29.
The company has currently sold 50 per cent of its 15-unit luxury villas and 30 per cent of the 74-unit condo project. Its major customers are foreign investors, who want to buy vacation residences in Thailand. Price ranges from Bt40 million to Bt48 million for a villa and from Bt8.9 million to Bt26.8 million for a condo unit.
In 2008, the company posted a total revenue of up to Bt60 million, most of which came from green fees only.
Who is the happier man, he who has braved the storm of life and lived or he who has stayed securely on shore and merely existed? - Hunter S Thompson
Re: Black Mountain awaits clearer picture
Interesting "bed-fellows" Mr Stig, ballsy. Sure it'll be fine as long as their're getting fat and rich, if not, well, hhmmmmm...............dark forces spring to mind.Bangkok Post wrote:Thai Nordic Property is a joint venture between a group of Thai lawyers and Swedish investor Stig Notlov.......
Resolve dissolves in alcohol