BC cashes in over THB340 million for the Oakwood Studios sale Setting sights on the B.O.S. model expansion in the prime Sukhumvit area
23 November 2022, Bangkok, Thailand – Boutique Corporation Public Company Limited (‘BC’) completed the sale of shares in the Oakwood Studios Bangkok Sukhumvit project. The transaction cashed in over 340 million baht or 0.60 baht per share, reinforcing the success of the B.O.S model in prime areas. With expansion plans on the horizon, the company aims to add a portfolio of new projects in the Sukhumvit area, as well as across tourist cities such as Phuket, Pattaya and Chiang Mai. The move signifies the recovery of the tourism sector, which sends promising signal for BC to move forward with businesses in full gear.
Prab Thakral, President and Group CEO of Boutique Corporation Public Company Limited or BC, reinforces the success of the Build, Operate and Sell (B.O.S) model, with BC’s last sale of the year. The sale of 4-Star Oakwood Studios Sukhumvit Bangkok hotel, located on Sukhumvit 36 was completed only within 1-month of opening and operations by BC, reinforcing the company as a leader in the development of properties through its key B.O.S model.
After the Board of Directors Meeting of Boutique Corporation Public Company Limited No. 7/2022, held on October 11, 2022, the committee resolved to approve the sale of investment in the Oakwood Studios Sukhumvit Bangkok hotel project by Boutique Overseas Holdings 5 Ltd. (“BOH5”), a company in which BC indirectly holds 59.5% of shares. The sale was made to Legend Land Bangkok Pte., a company that operates hotels and service apartments. The share purchase agreement was signed on October 13, 2022, with a total purchase price of 1,100 million baht (basic value in the event that the business does not have loans or cash) or approximately 6.2 million baht per room. The sale of investment in the Oakwood Studios Sukhumvit Bangkok hotel project was completed on November 23, 2022, in which BOH5 received the total share price of approximately 575,000,000 baht (before deduction of selling expenses), whereby BC received shares total valued 340 million baht, or approximately 0.60 baht per share.
BC is currently in the process of further expanding its business through the research and purchase of lands in prime areas, with high revenue opportunities. As solidified by the success and quick turnover of recent projects, such as the likes of the Oakwood Studios Sukhumvit Bangkok hotel, BC is maintaining its focus on the Sukhumvit area and B.O.S. model. The company remains positive on future outlooks, as it eyes for more success amid the economic recovery and return of the hotel and tourism business in Thailand.
At present, there are several projects under the ‘Build and Operate’ phase, in BC's B.O.S model. This include projects within the hotel and serviced apartment business in premium areas, business districts, and across tourist provinces such as Phuket, Pattaya and Chiang Mai. As of Q4, plans are set in motion with the recent launches of Ibis Nimman and Jono Asoke projects on November 1 and November 15, respectively. To solidify a more stable stream of revenue, the company also aims to develop a last-mile retail project for rent under the name "Cove Hill" in the Charoen Krung area by the end of this year.
In addition, BC has launched a series of new businesses to support further growth opportunities and risk diversification. This includes its new medical grade cannabis business under Bespoke Life Science Co., Ltd. (a subsidiary), with the launch of the first KANA Pure Dispensary at Jono Asoke Hotel, and KANA Wellness flagship clinic at Summer Point. The projects received much positive feedback since initiation, with expansion plans set across the Sukhumvit area and around the country. There is also the addition of the new logistics and warehouse business under Boutique Logistics Co., Ltd., with the first storage service and fulfilment center launching at Summer Point, under the name “GO Storage.”
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