Ratchaprasong to stay prime site _ Colliers

Ratchaprasong to stay prime site _ Colliers
Published: 21/04/2010 at 12:00 AM
Newspaper section: Business

The Ratchaprasong intersection area will remain the prime Bangkok location despite the risk of future protests in the area, says Patima Jeerapaet, managing director of the property consultant Colliers International Thailand.

''The central business district [CBD] remains the central business district but to future risks, there should be preventive measures to prevent a second blockage,'' he said.

Protests are often held in the centre of cities like London and Tokyo, he said.

Bangkok's CBD is continuing to expand and the demonstrations will have no significant impact on the rents as real estate is valued on a long-term basis while political problems tend to be shorter term, he added.

The appraisal of commercial real estate income is based on annual turnover. Income at department stores located in the Ratchaprasong area has dropped to zero since start of the rally. If the stores remain shut for 30 days this would cut 10% from the yearly projection.

But the appraisal method includes discount factors and business risks _ which cover negative factors such as inflation and business instability _ which account for about 5% of annual income.

''Offering rents will not drop as commercial property takes a long-term view,'' he said. ''Normally, when there's anything happening, landlords will help tenants by not charging rents for a certain period to help compensate disappearing revenue.''

With a situation like the rally at Ratchaprasong intersection, landlords must make sacrifices to help their tenants survive. But a landlord may ask for a higher increase in rents when contracts are renewed. Mr Patima said the government and Bank of Thailand should introduce financial measures to help business owners who suffer from the demonstration at Ratchaprasong, such as assisting debt negotiations or restructuring.

''Once everything settles down, the government should introduce a quick economic recovery plan or it might be too late to revive the worsening economy,'' he said.

He said the government should work in a parallel way with a contingency plan to cope with the political turmoil and the economic impact. The people in charge with the plan are civil servants, not government.

''We must be ready to face every kind of change, not only politics. There's also another critical change -disaster,'' he said.

Meanwhile, landlords and building owners should take preventive measures, such as building double entrances or reducing the potential for damage.

Colliers International Jumps a Notch

Colliers International Jumps a Notch
- Firm moves to the Second Spot in the Annual Lipsey Survey -

The results are in and Colliers International has climbed to the #2 spot in the annual Lipsey Survey of the top 25 brands in the commercial real estate industry. The firm had a lock on third place since 2004 and rose from 6th place in 2002 to 4th in 2003.

The results reflect the ballots, informal focus groups, and opinions from a variety of sources made up of more than 50,000 practitioners and industry leaders from REITs, Institutions, Mortgage Bankers, Commercial Brokers, Asset Managers, Property Managers and related professionals surveyed and interviewed by The Lipsey Company, which is a training and consulting firm specializing in the commercial real estate industry.

“Although we are pleased to have moved up to second place, we will continue to pursue our strategy of ensuring our clients receive the highest levels of service and consistent delivery over the long-term,” said Douglas P. Frye, Chairman and CEO of Colliers International. “We have risen in the rankings largely due to our best-in-class service and the high quality service offerings that we provide around the world. We are in the process of integrating some of the top names in commercial real estate under the Colliers International brand including FirstService Williams, FirstService PGP Valuation and PKF Hospitality and Hotel Consulting which will mark the beginning of our final step to the summit in this survey and in the minds of our clients.”

Earlier in the year, Colliers International announced it will combine operations and global real estate services platforms with FirstService Corporation (NASDAQ: FSRV; TSX: FSV) firms in the commercial real estate space. The combined entity will assume an industry-unique operating and partnership model and operate under the Colliers International brand.

For further information please contact:
Preedee Nukulsomprattana
Manager | Marketing & Communications
Colliers International Thailand
Tel : (662) 656 7000 # 501
Email : preedee.nukulsomprattana@colliers.com

FOR LEASEHOLD EXTENSION SUBMITTED TO THE GOVERNMENT

FOR LEASEHOLD EXTENSION SUBMITTED TO THE GOVERNMENT

On 10 March, 2010, Dr. Patima Jeerapaet, Chairperson of the Joint Foreign Chamber of Commerce's Property Committee and Managing Director of Colliers International Thailand submitted the final white paper for the proposal of Leasehold Extension to Khun Kiat Sittheeamorn, President of the Thai Trade Representative who seems to have been pleased with the proposal.

The purpose of the proposal is to stimulate a 60-year lease scheme, by ruling that the registration of two consecutive 30-year lease agreements be enforceable under the law at the Land Department. For further information of the submission, please click on link below.

Proposal for Leasehold Extension
Appendix 1 Property law comparative table
Appendix 2

Bangkok Condominium Market Q4-2009

Colliers International Thailand has launched Bangkok Condominium Market Q4-2009

Rapid increase in supply
Q4 2009 witnessed a rapid increase in condominium units launched over previous quarters with approximately 13,700 units in total, over 9,000 of these in the suburban area. This represents a 5.8% increase in total supply q/q and a 10.7% increase y/y.

Rising in the east
The eastern fringe and the outer city east area recorded the highest price increases in Q4 y/y with 35% and 19.6% rises respectively. The preeminence of the Sukhumvit corridor as the most sought after area to live shows no sign of abating.

Mass transit on the march
Continued expansion of the new BTS lines dominates condominium growth in urban Bangkok. Q4 2009 witnessed continued development along the new BTS Silom line extension in Thonburi. The number of units completed along the extension will have risen over sevenfold from 2006 to the end of 2010.

New niche market
The new decade will herald in a significant increase of the relatively prosperous 50 to 60 age group. Developers should consider this an attractive but challenging niche market. In the next ten years there will be an additional 1.58 million people in this age category.

Cheap credit fueling growth
Interest rates remain low but rises loom in 2010. Continued low interest rates have energized the market but most forecasters predict limited increases in H2 2010.
The rebirth of suspended projects begins Nearly 1,000 units are expected to be completed by the end of 2010 from previously suspended projects. Two more projects are slated for 2011.

The urbanization of Bangkok
Mass transit development will expand the urban reach of the city with more condominium units to be supplied in the urban area than the suburbs for the next few years.

Read full report

Guidance note issued to assist valuations of incomplete property

Thai lenders and the investment community will find it easier to set internationally recognised values on investment property under construction, thanks to a new guidance note issued by the International Valuation Standards Council (IVSC).

Commenting on the guideline which was released today globally, Simon Landy, Executive Chairman of Colliers International Thailand, said it was another necessary step in bringing transparency and international alignment to property valuations worldwide.

"Partially completed buildings have always been something of a grey area when it comes to establishing their true value, not only in Thailand but in many markets around the world," said Mr. Landy. "With the anticipated level of merger and acquisition activity in international markets over the next few years, more certainty is required in the way these values are established. This new guideline will provide an internationally recognised benchmark which will assist in bringing transparency and clarity to valuations of incomplete property assets, especially in listed companies."

Mr. Landy is a member of the International Valuation Standards Board of the IVSC, a not-for-profit, private sector organisation which was established to ensure an independent and transparent international valuation standards setting process. He was appointed to the Standards Board in 2009 and chaired the working group which developed the new guideline

Foreigners seek clarity, consistency

Thailand needs clearer regulations and policies to attract more foreign property investment, says George McKay, managing director of Colliers Corporate Services Asia Pacific Region.

"Rules should be rules. Some regulations are not clear enough - like foreign property ownership. Investors want clarity. It builds confidence. Unclearness will obstruct investment," he said.

As the Thai government aims to make the country a hub for regional offices, Mr McKay suggests the authorities set up long-term plans such as those implemented by Singapore.

"You need to know what type of business you want to attract," he added. "Pharmaceutical and biotech is a good opportunity to tap but key factors to building a regional hub include infrastructure, the tax system and education.

"Thailand should make a big investment in education to create more jobs and improve working skills. For instance, in the Philippines people can speak English and now it is becoming a rival to India in the call centre business."

The country also needs more aggressive strategies to compete with other countries and also should differentiate itself from others, he said.

The property market has bounced back and continues to improve in 2010 after a sluggish year in 2009, he said. Colliers recorded a 20% decline in the first half of 2009 but ended up with results on a par with 2008 as the second half was quite strong.

"The situation in Europe was worse but the Asia-Pacific region has come back, pushed by emerging markets like India, China and Southeast Asian countries," he said.

Colliers and FirstService Real Estate Advisors (FirstService REA) recently announced that they would combine their operations and global real estate services platforms. The combined entity will operate as Colliers International in 61 countries.

FirstService REA is an autonomous subsidiary of publicly traded FirstService Corporation on Nasdaq. With the announced integration, Colliers International is now ranked as the world's third-largest real estate services firm.

Source : Bangkok Post

Colliers International and FirstService Real Estate Advisors combine to create world’s 3rd largest commercial real estate services firm

Colliers International and FirstService Real Estate Advisors (“FirstService REA”) announced that they will combine their operations and global real estate services platforms. The combined entity will operate as Colliers International in 61 countries around the world. FirstService REA is an autonomous subsidiary of publically traded FirstService Corporation (NASDAQ: FSRV;TSX: FSV).

With this announced combination, Colliers International is now ranked as the world’s 3rd largest real estate services firm. Transiting from a network of affiliates to a more centrally owned and operated firm, the company will provide greater consistency in its operations and deliver highly specialised world class real estate services in markets around the world.

“Colliers International has many distinct competitive advantages when compared to other global service providers,” said Douglas P. Frye, Chairman and CEO of Colliers International. “Our successful partnership model enables key executives to retain significant equity in the businesses they operate day-to-day creating more alignment and accountability; ensuring clients receive the highest level of service and consistent delivery over the long-term.”

FirstService REA embarked on one of the most aggressive global expansion in the history of commercial real estate, largely executed during a time when competitors were scaling back due to the global economic recession. Apart from its expansion in the United States, most recently, the firm has acquired significant equity interests in Colliers International operations in the United Kingdom, Ireland, Spain, Russia and several other countries in Western and Eastern Europe and Asia Pacific.

The fully integrated Colliers International business employs more than 15,000 people in 480 offices in 61 countries, and generates in excess of US$1.9 billion in revenues annually.