OCEAN Steps into Property Business, Investing ฿240m to Acquire 55% in IKON Project (V 81)

Ocean Commerce Public Company Limited (OCEAN) has announced that the Board of Directors has approved the incorporation of a new subsidiary to invest in a property development business by using the company’s working capital as a source of funds.

The Board of Directors has approved to enter into an asset acquisition by acquiring 132,000 shares or equivalent to 55% of the total shares in V Sukhumvit 81 Company Limited (V 81), which is a limited company engaging in the property development business, from Pinwheel 1 Co., Ltd. The sale and purchase price of the shares is THB 240,000,000 to be used as a fund for the construction of IKON Project while expecting to complete the transaction within August 2019.

V81 engages in the property development business in the sector of the condominium project for sales. Presently, V81 is in the process of developing IKON Sukhumvit 77 Project (IKON Project), located at Sukhumvit 77 Ally (Sukhumvit 81 Yeak Onnut 10), Suan Luang, Bangkok. The project is a low-rise 8 stories condominium, having three buildings located in a total area of approximately 3 rai 3 ngan 55 square wah (3-3-55 rai). The Project has 442 units in total, consisting of four types of unit which are Studio, 1 Bedroom, 1 Bedroom Plus and 2 Bedroom.

The construction of IKON Project is expected to complete in the fourth quarter of 2020. The average sale price is approximately THB 90,000 – THB 120,000 per square meter.

IKON Project is located in the area in which being convenient to access public facilities such as BTS Onnut station (1 km), Tesco Lotus Department Store (2.2 km), an international school (1.5 km), hospital (3 km) and community mall, which is now under construction (20 meters) etc.

 

OCEAN will invest in the acquisition of assets transaction in the amount of THB 240,000,000 in cash. The company had paid a deposit of THB 50,000,000 and will pay the remaining of THB 190,000,000 which shall be paid in two installments: 1) the first installment of THB 70,000,000 on the date of the signing of the entire business transfer agreement and 2)  the second installment of THB 120,000,000 will be paid subject to the conditions precedent specified in the relevant agreement being fulfilled or waived in accordance with the terms and conditions of such agreement.

 

OCEAN expects an expansion of its business into a property development business, which will increase the value of OCEAN and to the shareholders and will help mitigating the risks in the overall business operation of OCEAN. Moreover, it will be an opportunity to increase income and appropriate yield rate which would stabilize OCEAN financial position while having more cash flow from the business operation in the long term.