A heavy rain is falling on Mr. Anant Asavabhokhin’s “house”, who is Thailand’s top rank real estate investor, while the chill is spreading to all real estate markets. The cause of this wet and chilly feelings is from the raise of interest rate that Siam Commercial Bank PCL (SCB) put on the amount that Mr. Anant will be spending on his 10% (about 1.2 billion shares) tender offer for Land and House Public Company Limited (LH)’s shares. Which, later, leads to the call off on Mr. Anant’s tender offer.
SCB claims that according to the company’s policy on “constantly reviewing interest rate on various loans. The latest adjustment has been made, including estates and cars, while Mr. Anant’s loan matches the scope of this adjustment”.
Wow…even a high credit score as Mr. Anant still got a raised interest rate on his loan for LH (No.1 in real estate business), considering that Mr. Anant also has a close relationship with SCB both personally and professionally through LH’s businesses.
Even the number one real estate business as LH cannot get a free pass on this, what to expect when the others request for a loan?
This is a clear signal that an interest rate for real estate loan will definitely be raised in the near future, despite a thousand reason not to raise the interest rate from the Monetary Policy Committee in the meeting on August 8, SCB still would not budge.
This is definitely a nightmare for every real estate shares in the markets. What to consider is which share will hurt more, and which will hurt less.
Let’s say that the small-medium businesses will receive the most “damage” from a decelerate in sales or a denial for a loan from the banks. The shares of this business section would not be any other group than Pruksa Holding Public Company Limited or PSH, L.P.N. Development Company Limited or LPN, Senadevelopment Public Company Limited or SENA, and Richy Place 2002 Public Company Limited or RICHY.
Meanwhile, the medium-large businesses will only receive small “damage”, compared to the first group of business. For example:
1) Land and House Public Company Limited or LH
2) Quality Houses Public Company Limited or QH
3) Property Perfect Public Company Limited or PF
4) SC Asset Corporation Public Company Limited or SC
5) Sansiri Public Company Limited or SIRI
6) Raimon Land Public Company Limited or RML
7) Origin Property Public Company Limited or ORI
8) Supalai Public Company Limited or SPALI
9) Siam Future Development Public Company Limited or SF
The best way is to keep an eye on how the “aftershock” from Mr. Anant’s raised interest rate situation will be affecting the real estate stock markets, and how other companies will handle the problem from the higher interest rate should be revealed soon!
What can be said is that anyone who has shares in the real estate section will be all sweating cold sweat after hearing of the situation.