SET Announcements

Enclosure SANSIRI SELLS SOFITEL SILOM BANGKOK TO LASALLE INVESTMENT MANAGEMENT - ACCOR PARTNERSHIP Sansiri has agreed to sell the Sofitel Silom to LaSalle Investment Management, a leading global real estate investment manager that manages more than US$26.4 billion of public and private assets for leading institutional, corporate and individual investors, in partnership with Accor Asia Pacific. Mr. Apichart Chutrakul, Chief Executive Officer of Sansiri Public Company Limited, announced the sale of Sofitel Silom Bangkok Hotel via the sales of 100% shares of its subsidiary, Richee Holding Alliance Co. Ltd. to LaSalle Investment Management. Net transaction proceeds of 1.2 billion baht are to be received by the first week of June 2005 and will be used to repay loans and accommodate future business expansion. Mr. Andrew Heithersay, National Director of LaSalle Investment Management, said "This is our second major property investment in Thailand and reflects our confidence in the Thai economy and tourism industry. This acquisition for LaSalle Asia Opportunity Fund II is aligned with our strategy to invest within growth markets which also offer value-add opportunities at the asset level." Mr. Heithersay added, "We now have $3 billion of real estate assets in Asia and approximately $150 million in Thailand. With an additional $2.5 billion war-chest dedicated for Asian real estate acquisitions over the next 2-3 years, LaSalle Investment Management is actively seeking to buy additional office, retail, industrial, residential and hotel assets in Thailand and Asia". Sansiri ventured into Sofitel Silom Hotel by acquiring 100% shares of Richee Holding Alliance Co. Ltd. in late 2002. After completing the refurbishment, Sansiri retained Accor, the leading European and one of the world's largest groups in hotel management and services, to operate the hotel and under its 5-star "Sofitel" brand. Under Accor's stewardship, the hotel's performance continues to improve and recorded a 73% growth in net operating income in 2004. Mr.Michael Issenberg, Managing Director, Accor Asia Pacific, Said "The Sofitel is very successful hotel and is a flagship for the group in Bangkok. Our commitment to invest in the hotel is part of an overall expansion development programme by Accor in Thailand" LaSalle Investment Management said it was delighted to expand its partnership with Accor and that current management or hotel operations would not be affected by the sale. Located on Silom Road in the Central Business District within easy reach to the Skytrain, the five-star Sofitel Silom Bangkok Hotel is uniquely positioned as the best address for business and leisure in Bangkok. The -storey hotel has 454 guest rooms, including 30 suites and two Presidential Suites with full range of amenities. The elite Sofitel Club rooms and suites on the 26th to 34th floors caters to corporate travelers while the Sofitel Club Lounge on the 27th floor serves as a sanctuary and meeting place for traveling executives. Conference and meeting facilities have also been added on the 36th floor. Additionally, an upscale spa and fitness center facility under the management of Paris-based Anne Semonin is provided to ensure a world-class spa experience for the hotel guests. Moreover, Sofitel Silom Bangkok features six distinctive food and beverage outlets, all under the direction of world-class chefs, to provide hotel guests with unique dining adventures. The Mistral serves contemporary Mediterranean cuisine while Shanghai 38 and Nika-I offer a great variety of Chinese menus and Japanese taste respectively. Also added to the lists are V9 Wine Pub, the "Best Bar in Asia" awarded by leading web publisher ASIAtraveltips.com as well as a bar and a patisserie featuring the chic Silom 188 and Lenotre!, the French legendary patisserie with a unique style. Mr. Heithersay added, "Sansiri has leveraged its renowned and respected development expertise to bring the Sofitel Silom Bangkok to its current high standards. We look forward to exploring further opportunities to work with Sansiri to generate mutually rewarding outcomes for our respective investors". Mr.Apichart added "Sansiri will use the 1.2-billion baht net proceeds to repay loans from financial institutions as well as to accommodate future business expansion, aiming to penetrate medium market segment through the launches of both condominium and single-detached housing projects. The six new SDH projects are scheduled to launch in the mid-year onwards.To strengthen financial capability, the company plans to reduce our current debt-to-equity ratio from 1.76 to below 1 by end of 2005".