The story about Magnolia Quality Development Corporation Limited (MQDC) at risk of default has become talk of the town since last week after a news outlet raised questions on the Thai developer’s financial status to the point of delaying payment to suppliers.
MQDC is well known for its property development prowess as one of its developing projects is The Forestias, a mixed-use project that is located just a few miles from the capital. It is said that the project will be also home to a 6-star boutique hotel, a community and family center, and a host of leisure and lifestyle amenities, including shops, restaurants, markets, offices, community spaces, and 30 rai of forest to explore together.
The report caught the attention of several brokerage firms, including Tisco Securities. In ‘TISCO Thailand Morning News,’ that Tisco sent to its clients, the question was also raised to a particular CEO of MQDC and the Chearavanont Family. Tisco also touched on the delayed supplier payments, but noted that the issue was something the CEO of MQDC “vehemently denied.”
According to Bangkok Post, which cited an official statement from MQDC, the developer reassured that it has strong financial status and business operations are proceeding without disruption in all aspects.
Later, Tisco Securities published an apologetic statement to its clients and specifically Magnolia Quality Development Corporation Limited (MQDC) for its coverage on October 4th that caused misinformation among investors regarding the financial status of the Thai property developer.
Tisco admitted its lack of verification and fact-checking, which resulted in an inaccurate representation based on one specific source. The brokerage firm also extended its apology to the family of MQDC’s CEO as well.
As concerns have been cleared from the street, investors or homebuyers are now at ease while awaiting the Forestias to open in 2025 as scheduled.
In May this year, Sumitomo Mitsui Trust Bank Ltd of Japan, a unit of Sumitomo Mitsui Trust Holdings Inc, did invest $10 million (approx. 335 million baht) in The Forestias Project.
