Noble Development to issue|Bt1.5-bn debenture next week
Noble Development next week will issue a Bt1.5-billion debenture, which will reduce the company's average interest cost to 6 per cent from the current level of 7 per cent, managing director Thongchai Busrapan said yesterday.
The three-year instrument will be used to replace its existing debenture as well as increasing the company’s cash flow, he said, adding that it would offer an annual interest rate of about 5.3 per cent to investors.
Meanwhile, the company yesterday introduced its latest condominium project, Noble Revolve, worth Bt1.36 billion.
Eighty per cent of the 483 units at the project, located at Soi Aree, cover 26 square metres apiece. Starting prices are Bt2.6 million per unit. Noble Revolve is the fifth condominium project to be developed by the company in the area.
“We have seen strong demand for condominium projects in this location since we launched the first such project in 2005 at a price of Bt55,000 per square metre. Now, thanks to higher purchasing power, there is strong demand to buy at Bt100,000 per square metre,” he said.
Land prices in the Soi Aree area have also increased from an average Bt75,000 per square wah in 2005 to Bt600,000 now, further demonstrating the strength of residential demand at the location, he added.
Noble Development will open the project for bookings at its sales office on August 19, after which it then plans to launch a further condominium project worth more than Bt1 billion in the final quarter of the year.
Taking into account yesterday’s project launch, the company now targets overall presales of Bt3 billion for this year. It achieved presales worth Bt2 billion during the first half.
Meanwhile, the company has a Bt14-billion backlog of homes that have already been sold and will be transferred to customers through to 2016. Bt3 billion of this amount will be book as revenue this year, helping the company’s 2102 net profit to come in at between Bt300 million and Bt400 million for annual earnings growth of about 10 per cent, Thongchai said.
The company reported revenue of Bt2.9 billion and net profit of Bt345.65 million for last year. Revenue of Bt466.6 million and net profit of Bt41.3 million were posted for the first quarter of this year.
