Takeovers drive Nusa's growth
Project acquisitions set to help push income up quickly
Angpao Assets (Nusa) will employ a takeover strategy to drive its income to Bt10 billion within five years, while expecting to finalise its takeover deal of a property project, which
is currently under negotiation, in the second or third quarter of this year.
Visanu Thepcharoen, chief executive officer of Nusa, said the company would take over a financially troubled property project in Bangkok after already acquiring an incomplete low-rise project in Phuket province. The Phuket project is expected to see its sales average Bt5 million per unit after the development is complete.
After it seals the deal on the Bangkok project, its average selling price is projected at Bt10 million per unit. Both projects will be developed and put on sale next year.
“Takeovers have been set as the company’s strategy as we want to make a leap in growth. This will pave the way for rapid growth to income of Bt10 billion within five years.
“Both projects are low-rise, which is the company’s focus. The acquisitions will be financed by our investment budget, which is set at Bt1 billion for 2012,” Visanu said.
The company targets sales this year of Bt6 billion. Its realised income is estimated to exceed Bt2.5 billion, up more than 200 per cent from Bt788.36 million in 2011.
Of estimated realised income, about Bt500 million will come from a Bt1.5-billion backlog and the rest from new projects. The company will launch five projects this year with a combined value of about Bt8 billion. These projects, consisting of four low-rises and one high-rise, will be gradually introduced in the second quarter.
Nusa also plans to expand its project development in the provinces for higher income.
After last year’s floods, consumers have begun to look at second homes in the provinces, prompting Nusa to seek development opportunities. The company continues to focus on low-rise projects in Phuket, Pattaya and Khao Yai.
Prices up
It is negotiating for land purchase in Nakhon Ratchasima’s Khao Yai area, which it expects
to acquire in the second or third quarter.
Visanu said the company had gradually raised the prices of its houses by 3 per cent because of higher costs.
The overall property sector is likely to expand in the latter half of the year. In the first half, concerns over flooding persist along with worries over likely impacts on the Thai economy from the European economic problems.
“This year, we believe that the property business will expand continuously but on a smaller scale, particularly in the first half,” Visanu said. “However, the situation in the latter half may ease and purchasing power could return. Good planning and strategy will be essential tools to attract customers. Nusa’s strategy is its differentiation.”
Last year, Nusa posted income of Bt788.36 million with net profit of Bt56.36 million. Its debt-to-equity ratio reduced to 0.86 times from 1.17 times in 2010.
Currently, Nusa projects where sales are ongoing consist of four detached-housing projects, two condominium projects and others such as Bangkok Mediplex, Nusa Avenue and Parc Exo Sport Mall.
