ALL Invests ฿585M. in the Leasehold Rights of Shopping Center “The New Forum Plaza”

All Inspire Development Public Company Limited (ALL) has informed the acquisition of assets by investing in the leasehold rights of the shopping center which is The New Forum Plaza.

The New Forum Plaza is located at No.870/52, Bang Pla Soy Subdistrict, Mueang Chonburi, Chonburi. The New Forum Plaze includes fixtures or other equipment related to the shopping center from PNY Rental Management Co., Ltd. which has initially acquired the leasehold rights of the Shopping Center from GD Progress Co., Ltd. and holds the leasehold rights of the Shopping Center.

The leasehold rights of the Shopping Center has a period of approximately 29 years (the contract will end on 1 November 2048) and entering into the sub-lease agreement of the Shopping Center with GD Progress Co., Ltd., to replace the sub-lease agreement that PNY Rental Management Co., Ltd.  and has initially entered into the sub-lease agreement with GD Progress Co., Ltd., with a monthly rental payment for a period of approximately 29 years (the contract will end on 1 November 2048). ALL will later proceed with this transaction through a newly set-up subsidiary.

For the investment, ALL will acquire the Leasehold rights of the shopping center, The New Forum Plaza, with 5 floors, gross floor Area of approximately 34,952sq.m., and Leasable Area of approximately 11,593 sq.m., for a period of approximately 29years

The total investment value is approximately THB 585.8 million which the source of fund comes from Working capital and loan from financial institutions. The payment term will be arranged to pay within the period of 10 months, totaling THB150 million, the monthly payment of the shopping center of THB 100,000 throughout the lease period, totaling approximately THB35.8 million, the leasehold rights of commercial buildings in front of the shopping center to be paid within the period 6 months, totaling value of THB30 million and the renovation and construction of a shopping center building to be paid with the period of 10 months, totaling approximately THB370 million.

ALL expected that this investment will help to increase the channel for growth for ALL’ s property development business and to increase recurring income for the Company. After completion of the shopping center, ALL will be able to recognize revenue continuously from this business and to diversify from the main business operation.