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Icon Siam Shopping Mall (opening in 2017)

The Icon Siam Shopping Mall has been called the “Mother of All Malls” and it is set to open in 2017. With two towers, 80,000 square meters of land, a conventional hall, a condominium and much more – it will be an enormous retail and dining experience that will dominate several city blocks. It will contain an estimated 500 shops, with 100 restaurants from more than 30 different countries. It is also planned to feature a multimedia light show that will be visible up to several kilometres away. The project will be located on the bank of the Chao Phraya River and will be home to the first Takashiyama Department Store in Bangkok. This incredible 50 billion baht project will be the largest private investment to date and it is backed by the same tycoons behind Siam Discovery, Siam Center and Siam Paragon. Keep an eye on the development of this exciting new shopping mall, as it will soon be one of the biggest developments in retail in Bangkok.

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February 16, 2019ZONEZI No commentsNews

Shareholder meetings play an important role in the governance of Thai limited companies since the Civil and Commercial Code require that limited companies be managed by the directors under the control of meetings of the shareholders (called “general meetings” in the Code). The primary instrument used by the general meetings to govern the company are shareholder meeting resolutions which are passed by a majority vote of the shareholders attending the meetings. However, an important legal issue that arises in regards to shareholder meeting resolutions concerns the withdrawal of resolutions after they have been passed by a meeting. Section 1195 of the Civil and Commercial Code provide for the withdrawal of company resolutions. According to that section, a resolution must be withdrawn by court order. Furthermore, only a shareholder or director has standing to challenge a resolution and may make such an application to the Court.

February 16, 2019ZONEZI No commentsNews, Real Estate

Changes to deposit protection limits on bank accounts in Thailand may give a boost to property investments even as there are warnings of speculation at the high end of the market for condominiums.

In early April the Governor of the Bank of Thailand issued a warning about the potential of bubbles developing in some parts of the Thai economy and referred to the property market. Some observers within the industry believe that worries over this are confined to the premium end of the property market particularly high end condominiums in Bangkok.

The comments come as it was revealed by the Bank of Thailand Governor Veerathai Santiprabhob that the bank is closely watching the flow of deposits from bank accounts to instruments offering a higher return or high risk funds. He said some of these funds were being invested in certain real estate sectors. The bank governor indicated that there was a concern that bubbles may form in some parts of the Thai economy.

February 16, 2019ZONEZI No commentsNews, Real Estate

Non-beach-related activities hold their own in the popular Thai resort hub amid improving air linkages

Phuket is transforming into a more well-rounded destination as a preponderance of visitors takes advantage of the Thai resort island’s expanding air transport infrastructure.

Tourists as well as property seekers are finding new purpose in the renowned island in the Andaman Sea: spending time and money on activities not necessarily related to the beach.

Almost 200,000 square meters’ worth of premium-grade leasable retail spaces are in the pipeline for Phuket, offering travellers and new residents options beyond the sand and surf, a new report by hospitality consultancy C9 Hotelworks showed.

Developers are also adding more serviced apartment units to mixed-use projects in a bid to attract real estate buyers, underscoring Phuket’s changing consumer landscape. Ten upcoming mixed-use properties are set to have a hotel-residence component, comprising 28 percent of total incoming supply.

“Phuket is gradually transforming to a more urbanised holiday destination rather than a pure beach getaway,” said C9 Hotelworks managing director Bill Barnett in a statement.

Four retail complexes are under development in the island — extensions to Boat Avenue and Central Festival Phuket among them — as demand for “non-beach centric activities” rise, C9 Hotelworks noted in the report.

“With the strong purchasing power of tourists, especially Chinese, Russians and Australians, more retail and tourism attractions are developing on the island.”

February 16, 2019ZONEZI No commentsNews

Thailand Economic Outlook

Thailand saw moderate activity last year, with subdued private investment and manufacturing virtually stagnating for the second consecutive year. Moreover, the death of King Bhumibol Adulyadej in October cast a cloud on consumer sentiment, especially due to an official year-long mourning period. However, there is a silver lining as recent indicators suggest a slight uptick in activity in Q4: exports rebounded strongly in November and manufacturing growth rose at a multi-year high, lifting the subpar annual performance. The political state of affairs is unlikely to gain momentum anytime soon: a recent request from new King Vajiralongkorn to amend the military draft constitution is expected to delay the elections planned for 2017 to 2018. However, the changes requested are not pivotal: they only represent a slight shift of power from the King to the yet-to-be-elected government.

February 16, 2019ZONEZI No commentsBusiness, News

Shareholder meetings are an important element in the management of Thai limited companies, since the authorized directors of the company must manage the company under the control of the meetings of the shareholders. In order to hold a meeting of the shareholders, a meeting has to be called according to the procedure defined in the Civil and Commercial Code. One of the procedures according to the Code is that a notification must be delivered to the shareholders.

Section 1175 paragraph one requires that an advertisement must be published in a local newspaper at least once before the date of the meeting no less than 7 days in advance and a notification must be sent by post with acknowledgment of receipt to all shareholders whose name appears in the shareholder registry no less than 7 days in advance of the date of meeting. However, for extraordinary meetings of the shareholders, the aforementioned procedure must be performed no less than 14 days in advance of the date of the meeting.

According to Section 1244, a notification shall be deemed to be delivered to a shareholder if it is delivered to him personally. Furthermore, if the notification has been delivered to the address of the shareholder that appears in the shareholder registry, the shareholder shall be deemed to have been duly notified.

According to Thai Supreme Court Decision No. 384/2506: “Section 1175 of the Civil and Commercial Code regarding notifications of a general meeting of the company only requires that a notification of the meeting be sent no less than 7 days. Therefore, where the Defendant, who is a company liquidator, has sent a notification by post no less than 7 days in advance of the meeting and Plaintiff, who is a shareholder, has received it, then it shall be deemed that Defendant delivered the notice correctly according to the law and it is not relevant as to what day Plaintiff actually received it.”

Furthermore, Section 1175 paragraph two requires that the time and location of the meeting be indicated in the notification, as well as the agenda for the meeting. If a special resolution is to be considered, then the substance of the resolution must be included in the notice.

According to Thai Supreme Court Decision No. 2644/2520 “a general meeting wherein a matter is considered outside of the agenda, a resolution passed by the shareholders to pay a debt which the shareholders themselves are the creditor and have a personal interest violates Section 1174 and 1175.”

Thai corporate law is complex. Foreigners who are in charge of managing a Thai limited company are advised to consult with competent Thailand lawyers.

February 16, 2019ZONEZI No commentsNews, Real Estate

There are 3 new Phuket housing projects designed for low income earners and those on financial assistance and reservations for units in these developments have been brisk, according to local media. Prices at the projects start at THB3.79 million and some of the homes will be completed and ready to move into by the end of 2018.

“The National Housing Authority (NHA) is creating 8 residential projects in 3 provinces, including Buriram, Phuket and Samut Prakan. In Phuket, there are 3 new projects. Firstly, ‘Phuket Thepkrasattri’, which is a 3-storey community housing project located near Laem Hin seafood in Koh Kaew. Each house is about 20 square meters,” says NHA Head of the Projects Pakum Noimanee to The Phuket News.

The Phuket Thepkrasattri project will have a total of 66 homes all but 9 of which have been reserved by buyers who qualified for the programme. The development will be finished sometime next year.

“The Phuket Thalang project, which consists of 19 3-storey townhouses, is divided into apartments and located in Srisoonthorn, beside the Phuket Community Housing Office. It is an extension of a pre-existing low income housing project,” says Pakum.

The apartments are 33 square meters in size and all units come with 1 bedroom and 1 bathroom. Prices start at THB620,000 and there are less than 50 units available for booking. The project will also be finished next year.

“The 3rd project in Phuket is the ‘Garden Ville Phuket By NHA’ comprising 2-storey townhomes. Each house is about 18.5 square meters and prices start from THB1.59 million. There are 354 total town homes in Garden Ville and about 200 have already been booked,” says Pakum.

The idea behind the programme is to help low-income Thais or those who are receiving financial assistance from the government afford housing. The NHA has developed similar projects in Phuket in the past, all of which have been successful with buyers.

February 16, 2019ZONEZI No commentsNews, Real Estate

Will buyers ever tire of the Land of Smiles?

For Australians, the phrase ‘the lucky country’ has strong resonance. The nickname, coined by author Donald Horne in his novel of the same name, has been used to describe the Antipodean nation’s weather, lifestyle and is often invoked to describe its good fortune from gold rushes to economic booms.

Despite its roots Down Under, the description could just as easily be applied to Thailand: a nation whose spectacular natural attributes, incredible cuisine and long-established cache as one of the world’s most appealing places to live has enabled its property market to ride out storms and setbacks that might have floored those in other countries.

“Thailand’s infrastructure, accessibility, and general reputation for being a laid-back leisure destination are still vastly superior to other neighbouring countries,” says Andrew Gulbrandson, research head at JLL Thailand. “While certain destinations within Thailand may become less popular, it’s difficult to envision a scenario where Thailand’s desirability as a place to invest substantially decreases.”

Indeed, the country’s reputation for being Teflon-coated when it comes to deflecting troublesome news, events and economic tidings is as resonant as ever. In August 2016, bombs exploded in the tourist hubs of Hua Hin and Phuket while last October saw the passing of King Bhumibol Adulyadej, the nation’s much revered monarch.

This year has, by Thai standards at least, been relatively light on potentially seismic events. However, the military-run government, in power since a coup in 2014, preside over an economy that continues to be lacklustre. The economy will expand 3.3 percent a year on average from 2017 to 2019, according to the World Bank, the weakest among eight developing Southeast Asian nations.

Given all this you could be forgiven for thinking that the country’s once-thriving real estate sector might be showing signs of lethargy, if not out and out fatigue. Not so, say analysts, experts and developers, pointing to booming demand for luxury property in the capital Bangkok and healthy interest from investors, both foreign and Thai, in popular secondary markets such as the paradise islands of Phuket and Koh Samui and the well-located beach resort of Hua Hin.

February 16, 2019ZONEZI No commentsNews

Author: Pharadon Heemmuden

Highlight

The market outlook for rubberwood exports is bright thanks to an increasing supply, as well as demand, especially from China, where the furniture industry is growing. Thai rubberwood is competitive in the global market due to its price and quality.
EIC sees increased potential for the local production of rubberwood furniture and other wooden products, which will help boost Thailand’s export value. Both the public and private sectors should join hands in research and development of new rubberwood products with an eye especially on design and branding.

February 16, 2019ZONEZI No commentsBusiness, News

The requirements and legal procedures involved in buying land in Thailand as a company (particularly with foreign shareholders) is quite complex. Siam Legal has therefore compiled this reference guide to help its corporate clients prepare the necessary documents and evidence required in order to avoid needless mistakes and costly delays when appearing before the Land Official for the transfer of ownership. The guide below can also generally apply to condominium transactions, except that foreign companies are not restricted from owning condominium units outright.

February 16, 2019ZONEZI No commentsNews, Real Estate