What happend with the mall in Patong?

[nelsonone]

Originally Posted by LivinLOS

Concrete cancer and low life expectancy is so common..

The Patong Condo tower was left half built for years over a dispute and the building offically condemmed for structural reasons.. It then changed hands and it was suddenlt fit to sell (to farangs).. Surprise surprise..

Had an American guy on a dive trip with me over Xmas LiL...........said that he had just bought into this complex for about $175K.......for a 2 bedroom condo........does that sound about right????

I asked him what inspections etc he had carried out on the building, what else he had seen to compare and what were the contractual obligations for building maintenance, levies etc.........

He hadn't investigated any of the above and had handed over a 10% deposit to the guy who was selling the condo....????

As you can imagine about 100 alarm bells went off in my head but I bit my tongue as you don't want to spoil someones dive trip over such a small matter...... .......he said that the realtor he is buying from is gonna set up the company, title etc for him etc etc etc........

I don't know what you guys think but I can't believe that normally sane people suspend belief when doing business in Thailand...............I can get into enough crap in Aus/NZ without even considering the weirdo law variations (always in favour of Thais) that exist in Thailand???

[stevem]

Originally Posted by nelsonone

I don't know what you guys think but I can't believe that normally sane people suspend belief when doing business in Thailand...............I can get into enough crap in Aus/NZ without even considering the weirdo law variations (always in favour of Thais) that exist in Thailand???

Used to see and hear it all the time. It never ceased to amaze me, as these had good jobs which meant brains in their heads, but they must check them in somewhere at the airport before they board the aircraft to leave home.

[LivinLOS]

At 175k USD that would be +- 7 mil which is at the upper end of the range but the higher seaview places did get that kind of money and the furnishings could easily be another million if done nicely.. I still think its high but maybe it was near the top etc.

As its condo's he should just be able to own it outright.. maybe they sold more than 50% under the condo rule tho and now need to title a few in Thai structred systems..

I think its not that people suspend belief its just that they still think they are doing deals like back home.. People grow up under one legal framework and they think the whole world plays fair and any problems a court will help them..

[dogblower]

Originally Posted by LivinLOS

At 175k USD that would be +- 7 mil which is at the upper end of the range but the higher seaview places did get that kind of money and the furnishings could easily be another million if done nicely.. I still think its high but maybe it was near the top etc.

As its condo's he should just be able to own it outright.. maybe they sold more than 50% under the condo rule tho and now need to title a few in Thai structred systems..

I think its not that people suspend belief its just that they still think they are doing deals like back home.. People grow up under one legal framework and they think the whole world plays fair and any problems a court will help them..

Doesn't sound like this guy was doing business as he would back home because it doesn't sound like he even did his basic homework. Can't imagine him not going over that sort of contract with a fine-toothed comb back home, so what happened here?

[Mav]

Originally Posted by dogblower

Doesn't sound like this guy was doing business as he would back home because it doesn't sound like he even did his basic homework. Can't imagine him not going over that sort of contract with a fine-toothed comb back home, so what happened here?

I work in finance here in Australia....and l see loads of people signing contracts to purchase all kinds of different property without having a Solicitor/Conveyancer look through the Contract of Sale to make sure everything is kosher....happens all the time.

[Warrior]

From: Phuket Gazette

Saturday, February 4, 2006

Mediation ends Jungceylon deadlock


PHUKET: The deadlock that resulted in a complete halt to construction of the Jungceylon complex in Patong has finally been broken, and the complex is expected to be open for next high season, Samrarn Yothayai, Chief Judge of Phuket Provincial Court, has told the Gazette.

Jungceylon, which occupies 55 rai of land off Rat-U-Thit 200 Pi Rd, was due to open in November last year, but partners Thanit Rattana-Kamchai – who owns the site – and Manit Udomkunnatum – who owns 53% of the project’s operating company, Phuket Square Co – have been involved in a protracted legal dispute since early 2004.

The dispute revolved around the estimated cost of the project. Originally this was 1.7 billion baht, but it ballooned to 3 billion baht, so K. Manit started looking for new investors to join the project.

K. Thanit, however, disagreed with this strategy, saying that he could accept neither the inflated cost nor changes to the management committee of Phuket Square Co. He refused to countersign checks issued by K. Manit to pay the main Jungceylon contractor, Powerline Co.

Powerline stopped work and, as a result, Krung Thai Bank declared its loan to K. Manit to be in default. It filed a complaint with the Bankruptcy Court in Bangkok, asking for him to be declared bankrupt.

However, Judge Samrarn said that, following mediation, the two signed a deal on January 26. “Under the agreement,” he explained, “K. Manit will sell his 53% share in Phuket Square to K. Thanit, and K. Thanit already has a new partner to join [the project].

The two parties met at the Bankruptcy Court [on Wednesday] to forge an agreement with the bank whereby K. Thanit will take authority over all [Phuket Square Co] operations.

The result of that hearing has not yet been announced but, said Judge Samrarn, “It is expected that Powerline will resume construction [soon] and that Jungceylon will open in time for next high season.”

[Crustasian]

On line from the Phuket Gazette is a press release stating that the situation has been resolved through mediation.The stockholders are changing and new money coming in to finish the project.

[K2]

Great - I hope they complete the place ... looking forward to a supermarket, cinima but most of a decent car park!

[mjochim]

PHUKET GAZETTE e-mail, 8 Feb 2006:

'White knight' rescues Jungceylon

PATONG: A mystery white knight has ridden to the rescue of the stalled Jungceylon megamall project, buying 53% of the mall’s operating company from one of the two main partners, who have been at loggerheads for months.

The identity of the white knight is being kept secret for the moment, but it is understood to be a major investment fund, which has pledged sufficient money to wipe out the operating company’s debt and give it the funding it needs to complete the mall.

The deal breaking the deadlock between Thanit Rattana-Kamchai – who owns the site – and Manit Udomkunnatum, principal of the operating company, Phuket Square Co, was brought about through mediation efforts headed by Samrarn Yothayai, Chief Judge of Phuket Provincial Court.

Judge Samrarn revealed that the two parties met at the Bankruptcy Court recently to conclude a deal with the project’s major creditor, Krung Thai Bank, whereby K. Manit relinquished his 53% share of Phuket Square Co to K. Thanit, backed by the mystery investor.

As a result of that hearing, the investor will cover all the debt accumulated by K. Manit, and both K. Manit and K. Thanit will withdraw all pending lawsuits against one another.

Jungceylon, which occupies 55 rai of land off Rat-U-Thit 200 Pi Rd, was due to open in November last year, but K. Thanit and K. Manit became involved in a protracted legal dispute in early 2004, over the ballooning cost of the project.

Originally Jungceylon was projected to cost 1.7 billion baht, but this soared to 3 billion baht, and K. Manit started looking for new investors to join the project.

K. Thanit, however, disagreed with this strategy, saying that he could accept neither the inflated cost nor changes to the management committee of Phuke t Square Co. He refused to countersign checks issued by K. Manit to pay the main Jungceylon contractor, Powerline Co.

Powerline stopped work and, as a result, Krung Thai Bank declared its loan to K. Manit to be in default. It filed a complaint with the Bankruptcy Court in Bangkok, asking for him to be declared bankrupt.

With the new injection of funds, however, Powerline could soon be back at work on the Jungceylon site. Judge Samrarn told the Gazette he understood the mall could open for business as early as September this year.

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[jimholio]

So, you think this means that Central Festival will be out of business next year?
I dont see how it could survive if this mall will be anything like it.

[stevem]

Originally Posted by jimholio

So, you think this means that Central Festival will be out of business next year?
I dont see how it could survive if this mall will be anything like it.

There is alot more to Phuket than just Patong. People from the other side of mountain will still goto Central and not come into Patong, as traffic will be even worst than it is now.

[geespot]

Originally Posted by jimholio

So, you think this means that Central Festival will be out of business next year?
I dont see how it could survive if this mall will be anything like it.

Why r u making such silly statements?

Do u even know the population of Phuket or even Phuket Town? or for that matter Patong

Why do u think most of the commercial activity is based around phuket town? have a wild guess young man....................next u will be wondering why the post of phuket is not moved to patong bay

multi billion projects are not built on a whim an in depth strategic analysis will have been completed for these type of projects

G

[jimholio]

Originally Posted by geespot

Why r u making such silly statements?

Do u even know the population of Phuket or even Phuket Town? or for that matter Patong

Why do u think most of the commercial activity is based around phuket town? have a wild guess young man....................next u will be wondering why the post of phuket is not moved to patong bay

multi billion projects are not built on a whim an in depth strategic analysis will have been completed for these type of projects

G

No, i dont know alot about the population in Phuket town. But when i was there, it was mostly tourists there. Not alot of tourists around phuket town compared to around Patong is it?

But im not saying you are wrong, im just thinking they will be losing alot of customers once it opens.

[Hobbsy]

Originally Posted by K2

Great - I hope they complete the place ... looking forward to a supermarket, cinima but most of a decent car park!

don't forget the Burger King.....w00t!!!

[Coyotee]

Originally Posted by Hobbsy

don't forget the Burger King.....w00t!!!

I am waiting for MK restaurant like that in Bangkok and Pattaya. Seen the advertisement for Jungceylon

M

[Hobbsy]

2 of em in Central and Big C already. Too far for Malaysian tho and no GoGo bars on the way!

[Mav]

Originally Posted by Hobbsy

2 of em in Central and Big C already. Too far for Malaysian tho and no GoGo bars on the way!

Went 2 the one in Big C.....The duck dish is scrumptious ......come to think of it l have never seen Malaysian out of a Beer Bar or Go Go

[ToTheBeach]

Originally Posted by jimholio

No, i dont know alot about the population in Phuket town. But when i was there, it was mostly tourists there. Not alot of tourists around phuket town compared to around Patong is it?

Central is focussing on the population of Puket, not primarily on the tourists.

Jungleceylon will be focussed on the tourists. Hence, the will split the available market. Enough population on Phuket and enough tourists to keep both going.

[Dingo's]

News on Jungceylon is that a new investor has come in, bought 53% of the business which allows additional financing. It's "supposedly" meant to be finished by next high season. We'll see it when it happens but everyone is eagerly awaiting it to open to save us locals from having to go to Phuket town all the time. Also, it should bring in a STACK of new girls to Patong that don't work in the bars, great for everyone.....