YTL ties up with Lehman to develop Thai resort

Source : The Straits Times, Dec 10, 2007

KUALA LUMPUR - MALAYSIA'S largest builder, YTL Corp, and Lehman Brothers have agreed to jointly develop a RM270 million (S$117.3 million) luxury resort on Thailand's Koh Samui island.

They might team up again for more such projects across South-east Asia, YTL managing director Francis Yeoh said after signing the agreement last Thursday.

He said YTL is looking for properties in Vietnam, Cambodia and the Philippines. In Malaysia, it is looking at Sabah, Sarawak and Pahang.

Lehman, which has a strong property portfolio in Thailand, hopes to announce some investments in Malaysia in before long, said Mr Charles Rubin, the head of its global real estate group in South-east Asia. Lehman is also interested in moving into Indonesia, he added.

The New Straits Times quoted Tan Sri Dr Yeoh as saying: 'We're looking forward to more joint ventures with Lehman. Independently, we're both moving in the same direction'.

He strongly believes that real estate in Asia has yet to realise its full potential.

'While the Mediterranean and the Caribbean took 25 years to develop and realise their full potential - and property prices there have appreciated by 15,000 per cent over the period - I foresee South-east Asia will take only 10 to 15 years to realise its potential.'

Apart from Malaysia, YTL has luxury hotels in regional tourist hot spots such as Phuket in Thailand and Bali in Indonesia.