Goldman Sachs, Apollo to invest $235 million in Bangkok’s tallest tower

mahanakhon-tower-bangkokGoldman Sachs Investment Holding (Asia) and the Asian unit of New York-based private equity firm Apollo Global Management will invest 8.4 billion baht ($235 million) in Bangkok’s MahaNakhon tower complex, the tallest skyscraper in Thailand.

The building’s developer Pace Development said in a filing to the Thai Stock Exchange on January 10 that the proposed investment – a $216 million equity injection and $18.8 million of financing – is expected to be completed within February 2017 subject to certain conditions.

Goldman Sachs and Apollo Asia Sprint will be investing in two units of the complex and the proceeds will be used for the development and completion of the skyscraper and an adjacent retail building. Some funds will be used to repay loans of the two subsidiaries, Pace said.

In detail, Apollo will pour  $165 million of the fund’s equity into the development, and Goldman Sachs will invested additional $70 million as per the deal. They will own a combined 49-per cent stake in each of two Pace subsidiaries called Pace Project 1 Co and Pace Project 3 Co which develop the Bangkok Edition Hotel and the retail space Cube plus observation deck.

MahaNakhon was partly opened last year as Thailand’s s tallest building at 314 meters. The project includes luxury residences, a hotel, restaurants and retail stores and is valued at about $500 million. Around 75 per cent of the residential units have been sold so far, the developer says.