Asia Properties, Inc. yesterday announced it has commenced negotiations to acquire 100% of a Thai property fund, with condominium assets for stock.
Such property funds allow foreigners to own property assets in Thailand -- buying and selling them virtually tax free. The unique benefits of the property fund include: 100% foreign ownership; corporate and dividend tax exemption; minimal land transfer tax; no encumbrances for fund remittances in or out of Thailand and the fund is freely transferable (a tax free event). The fund was activated by a deposit of 500 million Baht (US$13 million) into its bank account from abroad, and the purchase of a condominium property.
API said that because of the small number of funds of this type approved by the Thai Government, they represent considerable value to the Company.
'The Property Fund is a unique vehicle in which to place properties and will help us gain maximum value for API shareholders through investments in the commercial and residential real estate markets in Thailand,' Daniel S. McKinney, APIÂ's President and Chief Executive Officer, said.
The company is negotiating a multi-year loan against stock owned by one of the directors to finance company operations worldwide. API is also negotiating a US$2 million equity line in which to fund company activities.
Asia Properties, Inc. was established to invest in prime quality real estate in Thailand, and regionally in Asia at deep discounts. API is the only vehicle through which non-Thais can buy Thai real estate and hold the interest in the form of a liquid security trading on a U.S. securities market.
(source: Asia Properties, Inc.)