SET-listed developer Raimon Land Plc (RML) plans to spend 20 billion baht over the next three years, mainly in non-residential development to diversify in the property sector.
Chief executive Adrian Lee said diversification would help boost revenue from a target of 3-4 billion baht this year to 13-15 billion baht in the next three to five years.”We will stay focused on high-end projects and diversify into more landed housing developments and recurring income from hotels, offices, overseas markets, food and beverages and alternative investments,” he said.
By 2020, high-end condominium development will account for 35% of the company’s portfolio, followed by hotels and offices (25%), middle-end single houses and townhouses (25%) and others (15%).
He said half of the 20-billion-baht investment will be injected into the development of a new office building on a six-rai site on Phloenchit Road, opposite Central Embassy.
The plot will be leased from landlord Bhatra Co Ltd at a cost of 3.32 billion baht for 30 years from April 2018 as the current contract with an existing tenant will end on Dec 31, this year, according to Raimon Land’s report to the SET.With a construction area of around 100,000 square metres, the building will be entered for gold or platinum leadership in energy and environmental design, one of the most popular green building certification programmes.”Our office building will be completed by 2020 ahead of a large number of new offices being added to the market from 2022 onwards,” he said.
The company this year plans to launch two new residential projects worth a combined 4.6 billion baht.
One will be a detached housing project worth 1.1 billion baht, located on a 3.5-rai site on Soi Prasartsuk in the Nang Linchi area with 25-28 houses priced 40-45 million baht a unit.Next weekend the company will launch The Lofts Silom, a 37-storey condo project worth 3.5 billion baht, located on a two-rai site on Pramuan Road in the Silom area.Raimon Land will have a total of 268 units sized 34-354 sq m and priced at 210,000 baht per sq m on average or from 7 million baht a unit.
“The Thai real estate market is not good for many but it is not that poor. The momentum is still good with a lot of opportunities to invest,” said Mr Lee. “We have always been in the luxury segment, where new rivals are entering.”
The company has an inventory of around 4 billion baht and a sales backlog of between 3.3-3.5 billion baht. It aims to realise 3-4 billion baht in revenue by the end of the year, down from 5.2 billion baht in 2016.
In the first quarter, the company recorded 1 billion baht in revenue, down from 1.1 billion baht in the same period last year with a net profit of 100 million baht, down from 237 million baht.
It has remaining units for sale at seven projects in Bangkok and Pattaya.The largest remaining sale values are at Unixx, a completed condominium project in Pattaya and two condominiums in Bangkok, The River on Charoen Nakhon road and The Lofts Asoke on Asok road.
RML shares closed yesterday on the Stock Exchange of Thailand at 1.19 baht, down one satang, in trade worth 3.74 million baht.
Source : Bangkok Post