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IFA to Loan THB 395 million to Raimon Land

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Posted: 26 Mar 2009 | 1:42 pm

High profile developer Raimon Land is set to obtain a short term loan of THB 395 million at an annual interest rate of 10% from one of its primary shareholders IFA Hotels and Resorts. In a notice to the Stock Exchange of Thailand the key terms and conditions have been disclosed in a connected transaction and that no collateral has been posted for the bridge loan.

Raimon Land has developed Kata Gardens, The Heights and is yet the launch the Amalfi project in Phuket. The stated purpose of the loan in the notice posted on the company website is the repayment of debt and working capital for projects current under development. Shares in the company are currently trading at twenty satang.

While Thailand's residential market has been hard hit by the current economic downturn, this announcement restores a certain degree of confidence in recognition of overseas investors such as IFA towards improvements in market recovery.

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why dont Raimon Land go into Hotels and expand into other countries like China, Vietnam and Bali ??

Craig Whip, 16 Apr 2009 | 9:57 am

i reckon they r about to go under ..

Happy Feet, 29 Mar 2009 | 8:14 am

Hi Bill thats great news, do you know yet where that money is earmarked to go?
Do you think the almalfi project will start up again?

Bill Barnett responds:
In the submission to the Stock Exchanges which is on the investors section of the Raimon Land website they ahve stated its to pay down exiting loans and provide working capital. Henri Young who heads marketing came out in the Bangkok dailies a few weeks ago saying they were concentrating on selling existing inventory and Amalfi and 185 Rajdamdri in Bangkok were on hold. In this market place for 2009 we'd expect minimal project launches which will help supply demand as excess inventory will be absobed. While Raimon seems to be a whipping boy in the media at present they are not alone as most of the listed property companies have cash flow issues given the downturn and we'd expect others to look to raise short term debt as well.

Robin, 26 Mar 2009 | 5:01 pm

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