Grande Asset Development Pcl today announced the successful closure of a 10.4 billion baht financing package with Lehman Brothers.
The transaction involves the issuance and sale of secured floating rate debentures with the proceeds of the debentures to be used for refinancing, completion of unfinished projects, working capital and other expenses. The first drawdown, principally for refinancing, is available immediately.
Previously, Grande Asset’s financing has been arranged with multiple financial institutions with varying terms and conditions applied to each facility. This new, consolidated, three year financing package effectively replaces those facilities with a more efficient and cost effective arrangement with a single financial institution. This three year term will see through the completion of the projects and establish a strong framework for post construction refinancing again through local banks with whom Grand Asset has always enjoyed excellent relations.
Commenting on the transaction, Mr. Markland Blaiklock, Chief Executive Officer of Grande Asset Development Pcl stated, “This transaction is the basis of a firm commitment to all our stakeholders, particularly our customers, that we are determined to fast track completion of construction, upgrades and renovations of our projects. We have considered all prevailing contingencies that could reasonably arise and are convinced that this funding facility is sufficient to complete our projects to the highest possible standards.”
Grande will continue to ensure that finalizing these projects will be undertaken with the objective of maintaining the highest possible construction and design standards, overall decorative and furnishings quality and ongoing property maintenance and upgrades.
Grande recently hired US based CM&D, a specialist provider of construction management services to undertake a top-to-bottom review of all projects, evaluate and recommend ‘best practices’ needed to professionally complete these projects to the highest international standards. CM&D will also apply its proven effective fast track engineering and construction methodologies in forming its evaluation and final recommendations.
Mr Blaiklock concluded, “All of our projects, in Bangkok, Hua Hin and Pattaya are strategically located, incorporate innovative, cutting edge architectural and interior design concepts and have demonstrated strong appeal to both Thai and international buyers. We will remain very customer-service oriented and continue to be pro-active and transparent in providing guests, tenants and owners of our different properties with regular status updates on all our projects.”
Mr Markland Blaiklock (pictured right), Chief Executive Officer of Grande Asset Development Pcl joins Ms. Nittaya Hongrapipat (pictured left), Chief Administrative Officer & Treasurer, Lehman Brothers Thailand at a ceremony announcing Lehman’s providing 10.4 billion baht in new financing to Grand Asset Development.
For further information, please contact:
Satida Sritunyathorn or James Best
Aziam Burson-Marsteller
Tel. 0 2252 9871
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