Pace Development

{{Short description|Thai property development and retail company}}

{{Infobox company

| name = PACE Development Corporation PLC

| logo = Pace Development Logo.svg

| logo_size = 200px

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| type = Public

| traded_as = {{SET|PACE}}

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| foundation = {{Start date|2004}}

| founder = Sorapoj & Chotipol Techakraisri

| defunct =

| location_city = Bangkok

| location_country = Thailand

| locations =

| area_served = Worldwide

| key_people = Mr.Kraithip Krairiksh

| industry = Property Development Retail Food & Beverage

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| homepage = {{URL|http://www.pacedev.com}}

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PACE Development Corporation PLC is a listed Thai residential property development and retail company specializing in high-end residential real estate and gourmet retail.{{cite news |title=Company Overview Pace Development|work=Bloomberg Businessweek |date=2 April 2013 |url= http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=142654492|archive-url= https://archive.today/20130410163055/http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=142654492|url-status= dead|archive-date= April 10, 2013}}

History

Founded as Cinkara Company, Ltd. in 2004, the company is majority owned by the Techakraisri family.{{cite news |title= PACE Development eyes MAI |work=Bangkok Post |date=3 September 2012 |url= http://www.bangkokpost.com/print/283552/}} The chief executive officer is Sorapoj Techakraisri.{{cite news |title=Sorapoj Techakraisri |work=Thailand Tatler |date=2 April 2013 |url=http://www.thailandtatler.com/sorapoj-techakraisri/ |access-date=1 April 2013 |archive-url=https://web.archive.org/web/20130129081650/http://www.thailandtatler.com/sorapoj-techakraisri/ |archive-date=29 January 2013 |url-status=dead }} The Techakraisri family are founders of LPN Development, a Thai publicly listed real estate company which is listed on the SET50 Index and SET100 Index. Family members are two of the largest individual shareholders of LPN (4.05% +1.76%).{{cite news |title= L.P.N. Development Public Company Limited |publisher= The Stock Exchange of Thailand |date=2 April 2013 |url= http://www.set.or.th/set/companyholder.do?symbol=LPN }}

PACE began specializing in condominium development, and in 2013 listed on the Stock Exchange of Thailand,{{cite news |title= IPOs |publisher= The Stock Exchange of Thailand |date=26 March 2013 |url= http://www.set.or.th/en/company/ipo/upcoming_ipo_set.htm}} trading under the symbol, PACE, with financial advisers, Asia Plus. PACE offered 600 million shares, 29.2 percent of the company, in an IPO during a subscription period from 29–31 July 2013, with official trading commencing in August 2013.{{cite news |title= PACE Plans IPO by end of July 2013 |work= Bangkok Post |date=18 July 2013 |url= http://www.bangkokpost.com/property/news/360396/pace-plans-ipo-by-end-of-july}} The share price was set at 3.50 baht per share, the shares began trading on 7 August 2013, immediately dropping below the 3.50 price, eventually falling by more than 50% within the first 6 months.{{cite news |title= PACE Shares Fully Subscribed |publisher= Thai PR Net |date=2 August 2013 |url= http://www.ryt9.com/es/prg/140879 }}

PACE posted a consolidated net loss of 474.6 million baht (US$13.34 million) for the three months through 30 June 2015, compared with a loss of 79.1 million baht in the same period in 2014. The developer attributed the loss to the operating costs of local branches it owns of US gourmet food brand Dean & DeLuca and the continued sales and marketing expenses of the MahaNakhon project, as well as other projects such as the building of the 53-storey luxury development, Nimit Langsuan.

For the first quarter of 2016, PACE recorded consolidated net profit of THB67.5 million on total revenue of THB1.45 billion.{{cite news |title= PACE Excited to Start Construction on Nimit Langsuan|work= DDProperty|date= 24 May 2016|url= http://www.ddproperty.com/en/property-news/2016/5/125960/pace-excited-to-start-construction-on-nimit-langsuan}}

Past developments

Ficus Lane was launched in 2004 using a holding company of PACE, an 880 million baht development completed in 2007.{{cite news|title=Sorapoj ready to embark on new projects targeting |work=The Nation |date=25 September 2006 |url=http://www.nationmultimedia.com/home/Sorapoj-ready-to-embark-on-new-projects-targeting--30014547.html |url-status=dead |archiveurl=https://web.archive.org/web/20140518175705/http://www.nationmultimedia.com/home/Sorapoj-ready-to-embark-on-new-projects-targeting--30014547.html |archivedate=May 18, 2014 }} Ficus Lane is a 70 unit seven-storey property at Sukhumvit 44/1. In mid-2011 it sold for around 110,000 baht per square metre. In 2005, when introduced, it sold for 50,000 baht per square metre.{{cite news |title= Construction boom on Sukhumvit|work= The Nation |date=27 June 2011 |url= http://www.nationmultimedia.com/2011/06/27/business/Construction-boom-on-sukhumvit-30158749.html |archive-url= https://web.archive.org/web/20110709162117/http://www.nationmultimedia.com/2011/06/27/business/Construction-boom-on-sukhumvit-30158749.html |url-status= dead |archive-date= July 9, 2011 }}

Launched in 2009, the Saladaeng Residences is a 2.5 billion baht, 25 storey condominium development at Saladaeng Soi 1, with 132 residences.{{cite news|title= Thailand Pace Development bucks trend with luxury condominium launch|work= Property Report|date= 2 February 2009|url= http://www.property-report.com/thailands-pace-development-bucks-trend-with-luxury-condominium-launch-4318|access-date= 2013-04-01|archive-url= https://archive.today/20130411163350/http://www.property-report.com/thailands-pace-development-bucks-trend-with-luxury-condominium-launch-4318|archive-date= 2013-04-11|url-status= dead}} Saladaeng Residences is now sold out.{{cite news |title= Pace goes residential to enable listing |work= Bangkok Post|date=15 November 2012 |url= http://www.bangkokpost.com/print/321322/}}

Current developments

PACE is in the process of constructing MahaNakhon, initially a leasehold development in a joint venture with Industrial Buildings Corporation (IBC), first unveiled in 2009.{{cite news |title= Israel's IBC, Pace Development join in largest city project |work= The Nation|date=28 May 2009 |url= http://www.nationmultimedia.com/2009/05/28/business/business_30103809.php |archive-url= https://web.archive.org/web/20101111175728/http://www.nationmultimedia.com/2009/05/28/business/business_30103809.php |url-status= dead |archive-date= November 11, 2010 }} Construction commenced in 2011, with completion in 2016 by main contractor Bouygues Thai, for a total budget of 19 billion baht.{{cite news |title= Bouygues Thai to build Thailand tallest tower|work= The Nation|date=5 September 2012 |url= http://www.ddproperty.com/en/property-news/1970/9/1648/bouygues-thai-to-build-thailand-tallest-tower }}

MahaNakhon is a 77-storey high-rise mixed-use complex on a 3.6 acre site in Bangkok's central business district. MahaNakhon is by BURO Ole Scheeren Group through HLS.{{cite news|last1=Tan|first1=Christine|last2=Kit Tang|first2=See|title=Developer's towering ambitions for Thailand|url=https://www.cnbc.com/2015/08/20/paces-mahanakhon-a-symbol-of-faith-in-thailands-economy.html|accessdate=18 September 2015|work=Managing Asia|publisher=CNBC|date=2015-09-18}} At 314 metres in height, it is now recognized by CTBUH as the tallest building in Thailand since it passed the occupational permit process in April 2016. The property has been marketed internationally in Hong Kong and Singapore, and in February 2013, the largest single condominium sale was recorded in the Thai market, with a single 1,500 m² unit selling for 480 million baht.{{cite news|title= Pace reveals record sales for MahaNakhon Development|work= Property Report|date= 8 February 2012|url= http://www.property-report.com/pace-reveals-record-sales-for-mahanakhon-development-27997|access-date= 1 April 2013|archive-url= https://web.archive.org/web/20140527214104/http://www.property-report.com/pace-reveals-record-sales-for-mahanakhon-development-27997|archive-date= 27 May 2014|url-status= dead}} PACE announced plans to market MahaNakhon in the Middle East, the first Thai developer to do so,{{cite news |title= Thai Developers Hold Roadshow Overseas |publisher= Krungthep Turakij |date=9 April 2013 |url= http://www.bangkokbiznews.com/home/detail/property/property/20130409/499467/%E0%B8%AD%E0%B8%AA%E0%B8%B1%E0%B8%87%E0%B8%AB%E0%B8%B2%E0%B8%AF%E0%B9%81%E0%B8%AB%E0%B9%88%E0%B9%82%E0%B8%A3%E0%B8%94%E0%B9%82%E0%B8%8A%E0%B8%A7%E0%B9%8C%E0%B8%94%E0%B8%B6%E0%B8%87%E0%B8%97%E0%B8%B8%E0%B8%99%E0%B8%99%E0%B8%AD%E0%B8%81.html}} as a result of an increase in investment in Thailand due to the upcoming ASEAN Economic Community deregulation in 2016.{{cite news |title= The Ritz-Carlton Residences Invites Investors in Dubai|work= Dubai Chronicle|date=21 April 2013 |url= http://www.dubaichronicle.com/2013/04/21/the-ritz-carlton-residences-bangkok-dubai/ }} The song "MahaNakhon" by Thai group Thaitanium is inspired by MahaNakhon.{{citation|title= Thaitanium Official MahaNakhon Video|publisher= YouTube|date= 2 December 2010 |url= https://www.youtube.com/watch?v=Yj9_brKYa1M }} As of July 2013, sales of MahaNakhon residences exceeded 50 percent. As of November 2015 it is reported to be around 80 percent sold.{{Citation needed|date=November 2015}}

MahaNakhon is now sold and developed as a freehold development.{{cite news |title= PACE Jacks Up MahaNakhon Prices |work= Bangkok Post |date=18 March 2014 |url= http://www.bangkokpost.com/business/news/400359/pace-jacks-up-mahanakhon-prices-after-freehold-switch}}

MahaNakhon CUBE is the first phase of the development, and opened early in 2014, with outlets that feature dining from around the world, including VOGUE Lounge (Bangkok), Thailand's largest Dean & DeLuca outlet, as well as the L'Atelier de Joël Robuchon (Bangkok), Morimoto, M Krub and others. MahaNakhon was announced as completed in a star studded event in 2016 with a spectacular lightshow.{{cite news |title= The new tallest building in Thailand looks like a pixelated image in mid-download|work= Business Insider|date= 30 August 2016|url= http://www.businessinsider.com/mahanakhon-skyscraper-thailand-2016-8}} As of 2018, the hotel, observation deck and some residences are still in construction phase according to the project's Facebook and social media feeds.

On 19 June 2013, PACE announced the unveiling of MahaSamutr, a new luxury villa, country club, and beach club development in Hua Hin, which will be completed by end-2014.{{cite news|title= Pace Unveils Luxury Hua Hin Project|work= Property Report|date= 19 June 2013|url= http://www.property-report.com/pace-unveils-luxury-hua-hin-project-30232|access-date= 1 July 2013|archive-url= https://web.archive.org/web/20130627085101/http://www.property-report.com/pace-unveils-luxury-hua-hin-project-30232|archive-date= 27 June 2013|url-status= dead}} On a 120 rai plot, MahaSamutr will include 90 luxury villas set around a 45 rai man-made purified water lagoon featuring a white sand beach, the first of its kind in Asia, according to the developer. The development was unveiled at a black tie event in late July 2013.{{cite news |title= Star Filled Night As Hua Hin Luxury Resort Launches|work= Bangkok Post|date= 21 July 2013|url= http://www.bangkokpost.com/lifestyle/culture/360838/star-filled-night-in-as-hua-hin-luxury-resort-launches}} Sales stand at around 30% in late 2017, as the developer announced plans to sell Nimit and remaining Ritz-Carlton residence units to reduce debt {{cite news |title= Pace to sell B14.5bn in assets|work= Bangkok Post|date= 9 November 2017|url= https://property.bangkokpost.com/news/1357087/pace-to-sell-b14-5bn-in-assets}}

In 2016, PACE revealed construction progress of NIMIT Langsuan had begun following approval of the EIA, with sales already exceeding 90%. A super high-end development located in Langsuan Road overlooking Lumpini Park, the freehold development will be completed in 2018.

Future developments

In 2016 Pace Development announced plans to develop up to THB10 billion worth of residential projects, a villa development in Niseko, Japan and two new residential projects in Thailand this year, the first condominium project valued at THB3 billion located in Narathiwas Rajanakarin which will be launched before the second half of 2016. The other project will have a value of THB7 billion and is expected to be launched in the fourth quarter.{{cite news |title= Pace to expand in Bangkok and Japan|work= DDProperty|date= 25 March 2016|url= http://www.ddproperty.com/en/property-news/2016/3/120851/pace-to-expand-in-bangkok-and-japan}}

PACE has commissioned architect John Pawson and announced plans to start sales in 2017, with completion in 2020 [http://nisaderealestate.com/pace/ PACE].

Retail

On 17 November 2014, PACE announced the acquisition of Dean & DeLuca USA, as part of a global strategy to ramp up their premium lifestyle portfolio,{{cite news |title= PACE Goes Global |publisher= Pacedev.com|date= 17 November 2014|url= http://pacedev.com/news/full/pace_goes_global_ramps_up_premium_lifestyle_portfolio_with_global_acquisiti}} revealing plans to open hundreds of stores within 2 years, and expanding into more than 15 countries.{{cite news |title= Iconic lifestyle Brand "Dean & DeLuca" Acquired by Thailand Premium Property Developer PACE |publisher= Cision|date= 24 November 2014|url= https://www.prnewswire.com/news-releases/iconic-lifestyle-brand-dean--deluca-acquired-by-thailand-premium-property-developer-pace-300000217.html}} In 2015, CEO Sorapoj Techakraisri revealed plans to list Dean & DeLuca on the US stock market within 3 years {{cite news |title= Pace gears up for Dean & Deluca global expansion |publisher= Bangkok Post|date= 10 June 2015|url= https://www.bangkokpost.com/print/588233/}}

In August 2016, CEO Sorapoj Techakraisri revealed plans to increase the total number of stores for the brand globally to 300 branches by 2021.{{cite news |title= PACE Plans Big Growth for Dean & DeLuca Chain|work= Nation|date= 18 August 2016|url= http://www.nationmultimedia.com/business/Pace-plans-big-growth-of-Dean-&-DeLuca-chain-30293201.html|archive-url= https://web.archive.org/web/20160818171850/http://www.nationmultimedia.com/business/Pace-plans-big-growth-of-Dean-&-DeLuca-chain-30293201.html|url-status= dead|archive-date= August 18, 2016}} As of 2018, the number of stores globally stands at more than 60. On October 28, 2019, the company's website was shut down and an auction was held to sell most of the equipment and perishables at the last location in NYC (corner of Broadway and Prince Street).{{cite web |author1=Elizabeth Kim |title=Dean & DeLuca is Holding an Auction at its Last Location in NYC |url=https://gothamist.com/food/dean-deluca-holding-auction-its-last-location-nyc |website=Gothamist |accessdate=29 October 2019 |date=October 28, 2019 |archive-url=https://web.archive.org/web/20191028235657/https://gothamist.com/food/dean-deluca-holding-auction-its-last-location-nyc |archive-date=28 October 2019 |url-status=dead }}

Issues

In 2009 when PACE unveiled the design of MahaNakhon {{cite news |title= MahaNakhon|work= Skyscrapercenter|date= 2009|url= http://www.skyscrapercenter.com/building/mahanakhon/8725}} and references to design {{cite news |title= Developer's towering ambitions for Thailand|work= CNBC|date= 20 August 2015|url= https://www.cnbc.com/2015/08/20/paces-mahanakhon-a-symbol-of-faith-in-thailands-economy.html}} it resulted in issues relating to foreign architects in Thailand.

In 2017, Dean & DeLuca closed the Georgetown branch for health violations with a rodent infestation, the second time since 2013 to close {{cite news |title= Georgetown's Dean & DeLuca has been closed due to a rodent infestation… again|work= The Tab|date= 11 February 2017|url= https://thetab.com/us/georgetown/2017/02/11/georgetown-dean-deluca-closed-rodent-4120}}

In 2016 Dean & DeLuca committed to a six-year golf sponsorship agreement {{cite news |title= Colonial's new title sponsor plans to lay down roots in Texas|work= Star Telegram|date= 22 February 2016|url= http://www.star-telegram.com/sports/golf/article61867867.html}} but ended the sponsorship after 2 years.{{cite news |title= Dean & DeLuca expected to end sponsorship of Colonial golf tournament|work= Star Telegram|date= 19 October 2017|url= http://www.star-telegram.com/sports/spt-columns-blogs/mac-engel/article179696551.html}} The PACE investment in DEAN & DELUCA has reportedly placed PACE in a short term debt crisis, according to Bloomberg writers in September 2017 {{cite news |title= Hidden Rot Under Thailand's Calm - A debt overhang at the owner of coffee chain Dean & DeLuca points to hidden risks for banks.|work= Bloomberg|date= 4 September 2017|url= https://www.bloomberg.com/news/articles/2017-09-03/dean-deluca-owner-shows-how-trouble-s-brewing-for-thai-banks/}} PACE announced the sale of DEAN & DELUCA in part to retailers Central in October 2017 {{cite news |title= "PACE Says Central to Buy Dean & DeLuca" |work= Reuters|date= 2 October 2017|url= https://www.reuters.com/article/pace-dev-corp-dean-deluca-central-group/thailands-pace-says-central-group-to-buy-dean-deluca-ops-for-50-mln-idUSL4N1MD2RN}} although Central claimed there was no deal in the offing [https://www.pressreader.com/thailand/bangkok-post/20171003/281956017987634 Bangkok Post link: No deal in offing]. Plans for new branches in Dallas {{cite news |title= Dean & DeLuca isn't coming to Legacy West after all, and here's why|work= Dallas News|date= 25 October 2017|url= https://www.dallasnews.com/business/retail/2017/10/25/dean-deluca-cancels-plano-plans-morecoming-legacy-west}} as well as 3 different locations in New York's Trump Tower, Spice Market and Graybar Building were previously announced but have subsequently been cancelled as the firm has halted development in the brand.{{cite news |title= Dean & Deluca halts expansion plans|work= New York Post|date= 7 November 2017|url= https://nypost.com/2017/11/07/dean-deluca-halts-expansion-plans/}}

In March 2018 the struggling firm finally announced the sale of their signature project MahaNakhon, with the sale of hotel, observatory and retail elements to King Power effectively ending any Pace shareholding in the tower, since residences are sold off to the owners and the building management is by The Ritz-Carlton. A previous deal to sell residences and Nimit to Thai developer Sansiri had been announced after the Central deal fell through, but was also later cancelled by Sansiri.