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Real Estate Thailand Branch of Technology for Trading with Effective Use of External Expertise



Blumenthal Richter & Sumet (BRS) is a full-service law firm that helps leading international and domestic companies expand into new markets, grow their businesses and navigate increasingly complex regulatory frameworks.

For over 40 years, we have built a reputation for providing international standard legal services, leveraging our insightful local knowledge and always operating with the highest degree of integrity. Our licensed Thai, European, and US lawyers are client-led and focused on helping you reach your goals. As a team, we strive to deliver the right results and address not only legal issues, but also factors that affect the industry.

Understanding your needs with experience in the automotive, manufacturing, infrastructure, construction, transportation, mining, chemical, technology, media, telecommunications, real estate, hospitality, oil and gas, coal, renewable energy, insurance and pharmaceutical industries Get a market perspective to do. ..

How important is local market information, especially loyalty to effective cross-border real estate transactions, especially in the current Covid-19 market? Is there an example of how we used expert insights on the real estate market in our jurisdiction to help our clients?

Covid-19 has different impacts on each real estate sector and the approach to transactions needs to be adjusted accordingly. In addition to the different impacts on different sectors, different parts of Thailand may experience their own recovery trajectory, which determines some trading acquisition strategies and timings. As an example, tourism accounts for about 20% of Thailand’s GDP and has tight control over inbound travel, a tourism-related asset despite government-sponsored stimulus for increased local demand. Is at the mercy of influence. However, not all regional markets are created equally, and special attention needs to be paid to the development of domestic and regional travel trends in order for the tourism market to attract and respond to the types of travelers. Strong local market intelligence helps you identify by region which asset class is best suited to maintain value and profitability trends.

A more obvious strategy is to predict when the sector will bottom out, but it is wise to proactively determine if real estate assets can be relocated to take advantage of expected market trends. It may be an approach.Given the long-term adverse effects on real estate assets of all types of land in Thailand, post-acquisition because of the liabilities incurred and this is related to the asset acquisition / disposal process, pricing and, in the worst case, creditors. Incurs the risk of

As the market tightens over access to funding to support our business, we primarily determine the potential to divert all or part of the use of our assets, obtain the appropriate permits and build controls. Assisted clients in developing asset relocation strategies, including taking into account limits, zoning regulations, and more. As a second step in the analysis, consider creating value extraction opportunities as a way for clients to complement their financial requirements. As an example, consider the possibility of converting hotel inventory into long-term leaseable or sellable assets. Through short-term leasebacks, clients can use call / put options to keep assets in stock. Future repurchases / sales and reincorporation of assets into core inventory. The essence of the transaction is to separate the authorized use of part of the structure or project (in this case the hotel inventory), but retains the ability to opt in or out of assets into the hotel inventory pool and is legal. And maintain contractual compliance.

What are the key factors needed to achieve an accurate valuation of a real estate portfolio before making a transaction?

At this stage, asset valuation is a bit of a guessing game. When considering asset prices, you typically rely on a combination of comparable analysis, going concern analysis, and replacement cost valuation. However, in no sector, there were not enough levels of transactions to rely on comparable analysis. A going concern analysis may be more relevant if an agreement is reached on the treatment for 2020 and the expected 2021 and 2022 performance. We assume that the market will return to normal by the end of 2022, so price adjustments should be limited. For those who don’t want to glance at that crystal ball, we tend to focus on valuing replacement costs to establish a baseline for asset prices. Regardless of the methodology or rationale applied, it is important to accept that future transactions will remain in an unpredictable investment environment that includes break-even points and real estate assets that are difficult to resolve. Therefore, the valuation should consider factors that can affect freight costs, short- to medium-term changes in supply, and asset class recovery schedules.

Finally, understanding the seller’s motives as future real estate transactions are expected to allocate significant premiums for risk management as the market continues to react to Covid-19 and its downstream impact becomes apparent. It’s more important than ever. Through portfolio diversification, building cash reserves, and reducing short- to medium-term freight costs.

Tips – How to optimize your real estate portfolio

  • It is important to consider the current and expected short-term supply growth within each real estate sector. Attempts should be made to predict the short-term impact of Covid-19 on each sector and the relative price elasticity of demand. In the short term, the ability to survive and prosper depends on the ability to alternate assets and liquidate and relocate capital. Given the current level of uncertainty, asset liquidity should be an important consideration.
  • Second, we find that we are less exposed to travel-related policies, so we need to prioritize these physical assets with a greater focus on the domestic market. In the short term, they will take a more stable position, but this can be expressed in price.
  • Third, we need to consider government policies related to reconstruction assistance. Government Inspiration-The Urus Program has the potential to create opportunities for acquisitions, disposals, or reorganizations.

Real Estate Thailand Branch of Technology for Trading with Effective Use of External Expertise

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