New Nordic General Monthly Newsletter 30 July 2021

Dear Client,

Greetings from the New Nordic Restructuring Team!

The global pandemic drags on, and we would again like to hope for our client’s health and safety during these challenging times.

Here in Thailand, we are experiencing record numbers of new cases increasing to new peaks every day, coupled with extreme pressure on an overwhelmed healthcare system. While we note with optimism the Phuket Sandbox scheme is entering its second month of operation, we also see dwindling numbers of new arrivals scheduled amid increased restrictions on Phuket due to local infections rising and concern about the availability of resources for both locals and tourists. The Samui Plus reopening has seen just 31 international arrivals to Koh Samui (with 2 to Koh Phangan and 1 to Koh Tao) and 110 people coming from the Phuket Sandbox. Despite the few thousands of expats returning home and tourist arrivals through these programs, the results pale in comparison to the 40 million arrivals the country saw in 2019. We closely follow all the government’s plans to restart tourism activities in the country and will incorporate these developments into our plans for reopening and completion of projects with updates to follow.

The growing risk of infection, along with severe controls over interprovincial movement of people and goods have understandably impacted our daily operations in Thailand. This week, sadly, we recorded the first case of COVID amongst our employees and most are now transitioning into Work from Home arrangements. Additionally, Thailand is under very strict restrictions on the movement of people across provincial borders, along with a nationwide curfew. Until the situation is brought under control, face-to-face meetings will not be possible, but we remain ready to assist by videoconference on request.

In July, projects in Bali and Cambodia received visits from our contractor’s engineering teams to begin the mobilization planning process. Both construction sites maintain 24/7 security service and regular inspections and weatherproofing. Our local teams have also begun a review of the interior design elements of both projects, to ensure that the plans and materials chosen back in late 2019 are still available in the market at a competitive price.

The decision to restart construction is not taken lightly, and involves much more than simple financial consideration, especially in Bali and Cambodia where the projects are approximately 80% complete. The timing of completion, availability of local and expatriate preopening team members and costs associated with ‘hibernating’ the completed building until tourism resumes must all be considered to avoid any unnecessary expense. As we have maintained from the start of the pandemic, our primary goal is the preservation of values for all stakeholders, most importantly our clients. We continue to work hard toward the resumption of construction activities and completion of these projects in the soonest possible time. We will continue to provide regular updates to keep you informed of our progress.

In the Philippines, we are making good progress on the plans for the revised project in Angeles City, which will replace the previous Fortress projects in both Angeles City and Subic Bay. The current design is a 167 room, mixed-use development with both long stay and hotel accommodations, coworking spaces and meeting facilities. Our goal is to create a unique ‘Live, Work, Play’ environment in the Philippines which will attract hotel guests as well as long term renters wanting to be part of a fresh, vibrant community. Once certain technical elements are finalized, we will begin the tendering process and finalize the project budget. At that point, we will contact clients with more information about how units pre-invested in previous projects will be realized.

Finally, we have received a lot of positive feedback about the webinar which was recently held for New Nordic Development clients. We are planning a second such event at the end of August and will invite all clients in a separate message.

Thank you very much for your support and understanding as we work toward a brighter future!

New Nordic Restructuring Team