Pace Development Corporation, a real estate firm, said it is selling 14 billion baht worth of assets, including a substantial part of the country's tallest building MahaNakhon, to travel retailer King Power.
Pace, which reported profits for the first time last year since 2013, said the parts of the 22-billion-baht MahaNakhon project to be sold are land, the 154-room The Bangkok Edition hotel, an observation deck, MahaNakhon Cube retail building, sculptures, paintings, operating licences and related contracts worth 12.6 billion baht. It also sold land jointly owned by its subsidiaries worth 183 million baht.
The major part of the project not included in this deal is the 209-unit freehold condominium, the Ritz Carlton Residences Bangkok, which is more than 75% sold.
- Earlier story: King Power to buy MahaNakhon
Pace chief executive Sorapoj Techakraisri said the firm would use 10 billion baht of the proceeds to purchase shares in the project from investors Goldman Sachs Investment Holdings (Asia), an arm of Goldman Sachs, and Apollo Asia Sprint, a unit of Apollo Global Management LLC.
After the deal, Pace will become the sole shareholder of what's left of the project.
The proceeds would also be used to repay loans and develop its four other real estate properties and expand high-end grocer Dean & Deluca in the US, Japan and Thailand, Mr Sorapoj said in a statement.
Pace told the Stock Exchange of Thailand on Tuesday it had intended from the start to sell the MahaNakhon project to a real estate investment trust (REIT) after the completion of the construction. The deal would allow it to receive cash flow faster than expected.
King Power is the country's biggest duty-free retailer and owner of English Premier League football club Leicester City.