A three-party JV will jointly develop Sheraton Phuket Grand Bay Resort in Phuket.
Investment holdings firm Mercurius Capital Investment has entered into a joint venture agreement (JVA) with Thai firms Apex Development Public Company (APEX) and Grand Bay Hotel Co., to acquire a 50% shareholding interest in Grand Bay from APEX, a filing with the Singapore Exchange (SGX) revealed.
APEX is a property development firm specialising in mixed-use developments such as residential properties, commercial buildings, hotels, retirement and medical care resorts and shopping complexes. As at 17 June, its market cap is said to be approximately $31m (THB720m). Meanwhile, property development business Grand Bay reportedly has an issued and paid up capital of approximately $20.2m (THB468.9m), comprising five million shares.
The firms will also jointly develop a hotel property under the name of Sheraton Phuket Grand Bay Resort in Phuket, Thailand, with Grand Bay as the joint venture vehicle.
Pursuant to the JVA, Mercurius will acquire an aggregate of 2.5 million shares of Grand Bay from APEX for approximately $13.6m (THB310m), which includes the total costs for construction and development of its joint venture project.
The Sheraton Phuket Grand Bay Resort is said to be part of an integrated development of Sheraton Phuket Grand Bay Resort and Residences at Po Bay, Phuket. The Sheraton Development comprises the Sheraton Resort and The Residences at Sheraton Phuket Grand Bay.
“For the avoidance of doubt, the Sheraton Residence does not form part of the joint venture. The Sheraton Resort shall, upon completion, be operated by Starwood Asia Pacific Hotels & Resorts (Starwood) or its affiliates,” Mercurius explained.
Subsequent to the signing of the JVA, Mercurius and APEX had reportedly entered into an addendum to the JVA, where the parties had agreed in principle their interest in entering into a joint venture for the Club Med Krabi Resort and Residences, and Sheraton Krabi Yao Beach Resort and Residences mixed-use development projects at Yao Beach, Krabi, Thailand.
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