The Erawan Group Public Company Limited (SET: ERW) has informed the Stock Exchange of Thailand that the Board of Directors’ Meeting No. 8/2024, held on 28 October 2024, resolved to approve the entering into a long-term land lease agreement with 11 landowners, both juristic persons and individuals, (collectively referred to as the Lessors) for the lease of land cover an area of 2-0-17 rai located near the Phrom Phong BTS station, Bangkok.
The purpose of the leases is to develop a real estate project which aligns with the company’s strategy and operational plans, with a lease term of 30 years (from 1 December 2028 to 30 November 2058).
The company also has the right to extend the Lease Term for an additional 30 years from the expiration of the Lease Term (from 1 December 2058 to 30 November 2088).
ERW expects that the entering into the Transaction will strengthen the company’s operational performance, enhance its investment value, and expand its customer base, ultimately creating sustainable returns for the company and benefiting shareholders over the long term. Additionally, the entering into the Transaction will enhance the company’s competitiveness and support investments in other projects, significantly improving growth rates and operating results.
The Company will pay consideration, which includes advance rent payment, annual rental payment for the Lease Term, and annual rental payment for the Extended Lease Term, in cash, totaling approximately THB 6,141.70 million to the lessors.
