Noble Development Public Company Limited (“NOBLE”) has received board approval to sell its investments in two joint venture projects: Nue District R9 and Nue Cross Khu Khot Station to Proud Real Estate Public Company Limited (“PROUD”) for a total value of 867.57 million baht, reflecting NOBLE's 50% shareholding in conjunction with TNL Alliance Company Limited (“TNLA”), a joint venture between the BTS Group and Sahapat Group. The sale process is expected to be completed by the end of July, pending approval from the shareholders of Proud Real Estate Public Company Limited for a capital increase to support this investment.

Mr. Thongchai Busarapant, Vice Chairman and Co-CEO of Noble Development Public Company Limited, a leader in residential real estate development in prime locations of Bangkok and its vicinity, revealed that during the board meeting on May 26, 2023, a resolution was passed to sell all common shares held in two joint venture companies: (1) Rama 9 Alliance Company Limited (“PA9”), the developer of Nue District R9, and (2) Khu Khot Station Alliance Company Limited (“KK”), the developer of Nue Cross Khu Khot Station, along with transferring certain claims on loans owed by the joint ventures to PROUD, amounting to 867.57 million baht based on NOBLE's 50% shareholding.

The reason for the sale is aligned with the company's strategy to maximize return on equity (ROE) and internal rate of return (IRR) by reducing holding periods and realizing reasonable profits. Both joint venture projects have seen significant sales success, with Nue Cross Khu Khot Station already sold out, while Nue District R9 has achieved over 83% sales. The sales value of both projects is expected to yield good returns in terms of realized profits and cash flow, along with various fees received as the project manager. Therefore, the company believes that selling both projects at this time is appropriate, allowing for cash flow to invest in new projects with higher returns and improving the company's capital structure. Additionally, this sale will adjust the portfolio of joint ventures to introduce new projects in the future. Currently, the company has nine joint venture projects with TNL Alliance Company Limited (“TNLA”) valued at a total of 28.4 billion baht.

Furthermore, the company will continue to manage the projects under its existing role, ensuring that the project names, construction commitments to customers, and post-sale project management and construction warranty will remain unaffected for customers.

The process of selling the investments and transferring shares in PA9 and KK, along with certain shareholder loans, will occur after each party has fulfilled the conditions stipulated in the share purchase agreement, which is expected to be completed by the end of July 2023, allowing the company to record special profits in the third quarter of 2023.