New Nordic Development Going Bankrupt?* | Alleged Phetchaburi Scam

New Nordic’s asset mainly in Pattaya includes 23 completed projects, two Castles, yea not one but 2 castles and a park.

*New Nordic Development Company decided to go into voluntary rehabilitation under Thailand’s Bankruptcy Act, which they did in January 2021. Under this act, all civil actions against the company and payments to creditors are suspended. This allows the company to continue operations while New Nordic Development starts the rehabilitation plan.

All stakeholders will be allowed to vote on this rehabilitation plan when it becomes available.

The alternative to that is to liquidate everything to pay creditors.

Here’s the map of their projects; some are still under construction. I don’t think these are apartments for long-term rentals. I think they are mainly investment buildings that are sold to foreigners with the promise of a 10% return.

It’s weird why they don’t allow long-term residences there. At least they can get some income from that. Or maybe they do but don’t have enough tenants.

I’m no expert on this, but if you look at the map again, the land value on one of those project can cost about 50 to 100 million baht, just the land, because it is located in a prime location in Pattaya, just right behind the Pattaya city sign on that hill,

And you put a building on top of that land and pay staff. My guess is one of those projects can cost easily well over a quarter to half of billion baht because that’s how much other hotels are asking around the city.

They have 23 projects (maybe 1000 rooms or more per project), with no or a hand full of paying tourists for the past year.

If the travel restrictions continue for another year, I think more companies, foreign and local, will have to do the same thing.

There are just not enough tourists to even sustain these buildings.

Many smaller shops are already closed, and the people have moved on months ago.

The Thai Department of Special Investigation or (DSI) is investigating an alleged fraudulent Phetchaburi Park property development project by New Nordic Development.

Phetchaburi is a province where Hua Hin and Cha-am are located.

The one being investigated by the DSI is called New Nordic Development. The one that was in the news earlier this year for filing to go to the Bankruptcy Act is called New Nordic Group. I assume they are the same company.

Assuming they are the same company, New Nordic Development is a real estate developer and appears to be an investment firm in SouthEast Asia. If you have been to Pattaya before, they have assets in 23 projects in the city. Include two castles, a park and a dozen hotel buildings.

Earlier this year, the New Nordic Group decided to voluntary rehabilitation under Thailand’s Bankruptcy Act.

Recently the DSI alleged that they have a development project that was to be built on land found to be mainly in a forest reserve.

Here’s a quote from Bangkokpost,

DSI director-general Korawat Panprapakorn said on Wednesday that New Nordic Development Co had lured people into investing in the project, in tambon Rai Khok of Ban Lat district in Phetchaburi province.

Many of those investors were British and Russian nationals living in Hua Hin, Pattaya, Koh Samui, Chumpon and Phuket. Who filed a complaint about the project with the DSI. Foreign investors hold about 98% shares in the company.

The report said New Nordic Development promoted in 555 rai of the park property development project. The alleged promotion material would include a hotel, condominiums, detached houses, food parks, and water parks with the promise of a 10% annual return paid monthly. But the problem is that 499 rai of the property was inside a national forest reserve, according to DSI.

Report alleged investors lost about 3.4 billion baht in total. The report also alleged that the company had no intention to go ahead with the project.

If you have invested money in this development, you are invited to report to the DSI.

Hotline call 1202 (free call nationwide)

Understand that for any investment of any sort in Thailand, be aware of the legal protections available in your home country. You probably don’t have the same legal protection in Thailand and probably other southeast Asian nations too.

Use Google, and if you see “10% returns”, or they are promoting 555, rai of property, which translate in Thai as (hahaha), I would run.

If you want to know other common scams, I have a new ebook called 36 common scams in Thailand and a couple of other new ebooks. Check it out here.