Local and foreign investors are looking to buy up banks' non-performing
assets (NPAs), especially land and warehouses, in border areas as they prepare
logistics to cash in on the Asean Economic Community (AEC), bankers say.
Suchart Dechittirat, assistant
vice president at Krung Thai Bank, said investors were also looking for NPAs
such as hotels and hospitals. Assets in border provinces such as Udon Thani and
Mukdahan are in high demand, while NPAs in Kanchanaburi are becoming more
popular as well because of that province's proximity to the Dawei project in
Myanmar.
"Investors want developed
land and warehouses for the establishment of logistics businesses. Moreover, a
group of Singaporean investors have asked the bank about hotels they can
redevelop to serve the AEC," he said.
So far this year, KTB has sold
Bt7 billion worth of NPAs, and it believes sales will reach Bt12 billion by
year-end, higher than last year's Bt10 billion. KTB's NPA portfolio totals Bt35
billion.
Suchart said this should be a
golden year for banks and buyers alike because of the attractive prices for
NPAs. The rising prices of building materials are also benefiting the market,
but he said buyers should make quick decisions because the prices of NPAs would
go up by 5-10 per cent next year.
The prices of NPAs in flood zones
are also expected to increase next year if there is no repeat of last year's
inundation in the meantime, he said.
KTB will offer more than 3,000
non-performing assets at the NPA Grand Sale 2012, Home Loan 2012 and Home
Buyers' Expo 2012 being held from Thursday to Sunday. The bank expects to see
sales of no less than Bt600 million from the four-day event.
Chatchai Payuhanaveechai,
executive vice president at Kasikornbank, said the AEC would present greater
opportunities for selling NPAs, adding that land and office buildings were
expected to be the hot items for investors. Thailand is in the centre of the
AEC, so investors are interested setting up their sales offices here.
The number of non-performing
assets will gradually decrease in line with the economic growth driven by the
AEC, he said. NPAs in border provinces such as Udon Thani, Khon Kaen and Nong
Khai will become more in demand, replacing Nakhon Ratchasima province, which
has been a top market in this category.
SUCHEERA PINIJPARAKARN
Business & Investment Opportunities
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