Raimon Land acquires additional 25% stake in 'The River' from Lehman Brothers Bangkok Riverside Development

THH is a parent company of Taksin Properties Co., Ltd "TPC"; TPC is the owner of "The River".

The acquisition has resulted in an increase of Raimon Land's aggregate investment in "The River" from 60% to the current 85% shareholding (74% held directly by Raimon Land and 11% held through "Contemporary Property Co., Ltd", a Raimon Land subsidiary). The balance of the shares is held by Raimon Land's two major shareholders, IFA Hotels & Resorts 3 Ltd and Istithmar FZE, both headquartered in Dubai.

The transaction is another step in Raimon Land's reorganization program which has entailed the refinancing of several loans through local and international sources, the reduction of overhead expenses by 40% and the revitalized focus on existing projects currently under construction, insuring their timely completion and transfer to buyers.

Raimon Land Chief Executive Officer, Hubert Viriot, said, "the recent acquisition of these additional shares in "The River" is an indication of our long-term commitment to our on-going projects, as well as our commitment to maintaining the construction schedule of this landmark development."

As a result of the acquisition of Lehman Brothers Bangkok Riverside Development's stake in "The River", Raimon Land's revenue stream for the next three years is expected to increase from Baht9.0bn to Baht12.75bn. Similarly, the resulting profit sharing from proceeds on the project will increase by 25%.

Raimon Land has achieved over Baht7.7bn in sales revenue since it launched "The River" 18 months ago, and has sold close to 55% of its overall inventory. Despite the recent economic and political turmoil, sales at the project have continued at a brisk pace.

"The River" has secured a syndicated loan of Baht5bn towards the development of the project; participating banks include Standard Chartered Bank, Thailand Military Bank and Siam City Bank.

All piling and sub-structure works have been completed and construction on the superstructure commenced early this year. Beginning in mid-August, an aggressive construction program will be implemented with one level rising every six days. Construction progress is on schedule for completion by quarter four 2011.

Raimon Land recently won four awards at the Thailand Property Show 2008: Best Developer, Best Condo Development (Phuket) for The Heights Phuket, Best Condo Development (Eastern Seaboard) for Northpoint and Best Development Website for the second consecutive year for www.theriverbangkok.com.