MAX's Board Proposes Shareholders Approve Investment in EEC Real Estate Worth 1,038.11 Million Baht Aiming for Steady Revenue Growth

Max Metal Corporation Public Company Limited (MAX) reported the resolutions from its Board of Directors meeting No. 5/2020 held on May 7, 2020, which included significant decisions regarding the company's revenue structure development plan to ensure continuous growth. The board proposed a plan to invest in real estate, which will enhance the company's income stability.

The board agreed to present to the annual general meeting of shareholders for the year 2020, scheduled for June 19, 2020, the proposal for investment in real estate and related services along the eastern coastline. Currently, this area is expanding to support the "Major Infrastructure Development Project in the Eastern Special Development Zone" (Eastern Economic Corridor or EEC). The company plans to acquire 100% of the common shares in two companies: 1. The Master Real Estate Co., Ltd. ("The Master Real Estate") for a total of 838.11 million baht, and 2. Ariya Estate Co., Ltd. for 100% of all shares from existing shareholders at a price of 200 million baht, bringing the total transaction value to 1,038.11 million baht.

The Master Real Estate operates in real estate development and holds land rights for a total of 11 plots, covering an area of 27 rai, 2 ngan, and 55 square wah, located adjacent to Sukhumvit Road, which is a main road connecting to the EEC project area currently under development, including the U-Tapao Airport Development Project and the high-speed rail project connecting three airports. The land is within a 5-kilometer radius of U-Tapao Airport, and once the EEC project construction is completed, there will be an additional access point closer to this land. This land plot is the closest vacant land to the U-Tapao Airport development project. After thorough research and study, the company sees this location as highly potential for real estate development, which will significantly increase both the land value and the real estate project in the future. The company plans to develop this area into a Luxury Airport Hotel in the first phase to accommodate business travelers or passengers traveling to and from U-Tapao International Airport, aligning with the economic growth and industrial expansion in the area due to the progress of the EEC project, which will further increase the value of this investment.

Ariya Estate operates the Wisdom Hotel located in Mueang Rayong District, Rayong Province, with 67 rooms and complete amenities for guests. Currently, the Average Daily Rate for all room types is approximately 1,600 baht, with an occupancy rate of about 67% - 80%, which is considered satisfactory for hotels in general. The company plans to develop Wisdom Hotel by bringing in a well-known and recognized hotel chain brand to manage the hotel under acceptable terms to elevate service standards and expand the customer base. The sellers will be responsible for sourcing the hotel brand within three years after signing the share purchase agreement, providing a guarantee valued at no less than 40,000,000 baht to the company.

SOURCE : www.bangkokbiznews.com