PACE’s 3 Frameworks to Solve “C” Sign, Focusing on Property and F&B Business
Since the "C" sign has been give to PACE on August 16, 2018, PACE has come up with solutions that may have lift the sign off their name.
PACE Development Corporation Public Company Limited (PACE) has built new business frameworks and has arranged a public presentation for investors and related persons to clarify its performance due to fact that the shareholders’ equity is less than 50% of paid-up capital for PACE’s second-quarter 2018 financial statements.
PACE’s business framework
Property Business
1. For real estate projects for sale that are under sale activities and construction:
- Transfer the unit sold of The Ritz – Carlton Residences Bangkok and sell the remaining units to record the revenue from sales by end of 2018.
- Proceed with the construction and sale activities according to plans in order to record the revenues as targeted of the following years.
2. Adjust and enhance recurring income asset in order to increase revenue for projects such as MahaSamutr Country Club which is currently under construction.
3. Explore new business opportunities to develop new projects. The forms of investment will be subject to the appropriateness of PACE’s financial status.
Gourmet Food and Beverage Business
1. Restructure the business operations by separating the business in to regional segment in order to create more efficiency and increase regional suitability.
2. Expand stores and value-added Dean & DeLuca brands for both domestic and overseas location through franchise model.
3. Develop the products under the Dean & DeLuca brand and/ or collaborating with celebrities to sell the products in Dean & DeLuca stores and other sales channels to create more value for the brand.
Financial Restructuring
Financial restructuring could immediately change PACE’s capital structure as well as the financial ratios (shareholders’ equity to paid-up capital). PACE will need to carefully consider the impact to all parties.
In summary, PACE business’s framework to improve and change PACE shareholder’s equity that is less than 50% of paid-up capital is partly from the operational business framework which will assist in reducing the accumulated loss (increasing shareholders’ equity), from 2 core businesses (Property Business and Gourmet Food and Beverage Business) and partly from financial restructuring framework which PACE will carefully consider the impact to all parties.