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 The Deutsche Bank Group has invested two billion baht in the debt-ridden
Murex Co, the owner of
Blue Canyon Country Club in Phuket, paving the way
for the golf-course developer to exit its rehabilitation plan.
The bank, through RREEF Global Opportunities Fund II, a real-estate
investment fund, will become the largest shareholder in the golf course.
However, the size of the stake held by the bank was not revealed.
It was the group's largest investment in the Thai property market after
it co-invested in the
Evason Phuket and
Evason Hua Hin resorts a few years
ago.
Morgan Laughlin, managing director of DB Real Estate Asia, the fund
manager, said the company believed that Blue Canyon Country Club would
become one of the premier integrated resort communities in Asia.
''We believe that after the injection of funds, Murex should be able to
get out of the rehabilitation plan by March next year,'' he said at a
briefing yesterday.
Of the two billion baht in funds fund, some will be used to repay debts
to Thai Asset Management Corporation (TAMC) and existing bank creditors
while some will be used to buy rights issued by Murex under the
restructuring plan.
Sia Leng Yuen, the chairman and CEO of Murex who currently holds 90%,
will see his holding in the company diluted after the entry of Deutsche
Bank.
Developed in 1988 from an old tin mine and rubber plantations, Blue
Canyon Country Club (Phuket) has two golf courses on 1,800 rai of prime land
and is recognised as the most exclusive golfing establishments in the
region.
Murex will continue to renovate the two golf courses and villas for rent
and sales in the Blue Canyon Country Club. The villas are being managed by
General Hotel Management.
Mr Laughlin said he was optimistic about Phuket's tourism market, saying
it would likely become the second home to foreigners.
The property is subject to ownership disputes in provincial criminal and
civil courts as Rawat Chindapol, one of the golf-course founders and one of
its creditors, filed a lawsuit against an allegedly dishonest increase in
registered capital that resulted in the dilution of Mr Rawat's stake to 4%
from 65% and his loss of managerial control.
''I will continue to fight the case to the end but I can't tell what the
outcome will be,'' Mr Rawat said.
But Mr Laughlin said he was confident that Mr Sia would win the case,
which he believes is groundless.
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