In the News: 2010
Lombard Records 7x Gain Exiting Asian Housing Business
San Francisco, CA - August 20, 2010
Lombard Investments announced today that it has sold a major portion of its stake in Thailand-based Pruksa Real Estate Pcl., realizing a seven-fold return on its investment. Lombard and the company founder, Thongma Vijitpongpun, placed shares with overseas and local institutional investors in order to increase the stock’s liquidity. Phatra Securities acted as the lead placement agent for overnight bookbuilding on August 17, 2010.
Lombard provided capital to Pruksa in 2005 through its Thailand Equity Fund in order to expand the company’s real estate project development resources and increase the capacity of its prefabrication factory. Over the last five years, the company has grown to become a technologically innovative provider of factory-built housing and Thailand’s largest residential developer, with overseas operations in India, Maldives and Vietnam. The company’s market capitalization now exceeds US$1.7 billion.
Founder and CEO Thongma explained, “Over the last few years, we have received many inquiries from all types of investors due to the extraordinary performance and growth in profitability of our company. Since we started Pruksa, we have always stressed product quality first and foremost. Also, we planned carefully for sales growth to meet the strong demand of first-time homebuyers, making constant improvements in our ability to manage quality construction projects in a short time frame, and implementing new technologies to produce great value. Furthermore, we have steadily expanded the range of our product offerings and launched overseas operations in very strong markets.”
Thomas Smith, Lombard Managing Director, said: “We are proud to have worked with the leading producer of affordable housing in Southeast Asia. The company is led by a highly capable visionary who has applied advanced technology to solve twin problems: how to build high quality, affordable housing for first-time homeowners and generate significant profits commensurate with the risks. We are confident that this extraordinary leader and his highly disciplined organization will continue to be a strong industry force and an extraordinary example to follow over the next decade.”