SET-listed developer Ananda Development has cut its transfer and presales targets for 2021 by 37% and 24%, respectively, after the most recent wave of the pandemic hit residential demand and delayed the country's reopening plan.
Last Friday's court verdict on the Ashton Asoke case has ignited a similar complaint against another condo project on Soi Yen Akat in Yannawa district, with a request to suspend the construction permit issuance.
TRIS Rating views that the ruling of the Central Administrative Court to revoke the building permit of the Ashton Asoke project will not have an immediate impact on the credit ratings assigned to Ananda Development PLC (ANAN). TRIS Rating assigned the ratings to ANAN and its senior unsecured debentures at ?BBB-? with a ?stable? outlook, and to its subordinated capital debentures (hybrid debentures) at ?BB?. The remaining unsold units of the Ashton Asoke project was worth only THB0.8 billion at the time of the ruling, out of the total project value of THB6.5 billion. ANAN holds 51% equity in this project while SEA Investment 5 Pte. Ltd. (a subsidiary of Mitsui Fudosan Co., Ltd.) holds the rest. The expected share of profit contribution to ANAN from the remaining unsold units is estimated to be around THB60 million. There is no loan outstanding extended to this project.
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On Friday, the Administrative Court ruled to withdraw the permit for the 6.5-billion-baht Ashton Asoke condominium project, a swanky 50-storey high-rise residential building saying the project violated the Building Control Act as it does not have an exit onto Asoke Road.
Construction had wrapped up and 80% of its rooms had already been sold, but the court ultimately decided that the project s exit onto Asoke Road is actually located on an adjacent plot of land owned by the Mass Rapid Transit Authority which the developer claimed to have legally leased.
The problem actually began a few years ago, when several residents living on Soi Sukhumvit 19, led by the president of the Stop Global Warming Association, asked the court to look into the project s approval process. The plaintiffs named in the lawsuit several people who were in charge of the project s permits, including the director of Wattana district, the director of the Bangkok Metropolitan Administration s (BMA) Departme