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.