SC Asset plans Bt20bn worth of projects

Some 70 per cent of the new projects set for launch next year will be low-rise, mainly detached housing and townhomes, while the remainder will be condominium projects.

“We cannot say exactly how many projects will be launched next year because that will depend on the final business plan, but the project value will be more than for those launched this year, when we launched 14 projects worth Bt18 billion,” deputy chief executive officer Nuttaphong Kunakornwong said at a press conference yesterday.

Meanwhile, the company has set aside an investment budget of Bt3 billion to Bt4 billion to buy land next year for the development of residential projects from 2013-2015. 

That is lower than the Bt5 billion spent on land this year because the company currently has more than 10 plots of undeveloped land in its bank. “We have spent Bt10 billion in 2011 and 2012 to buy undeveloped land to develop projects in the years 2013-2015, so we will reduce the budget to buy land next year,” he said.

However, SC Asset will spend more next year on corporate and product rebranding, as it aims to reinforce the message that the company is a developer of quality residential projects. “Our brand will be in the minds of customers when they want to buy a quality home,” the deputy CEO said. 

The company’s 2013 marketing budget will be more than the normal 3 per cent of annual sales value, he added.

The investment budget, meanwhile, will come from the company’s cash flow and bank borrowings.

“We also have a debenture worth Bt2 billion, which was launched this year and is enough for business expansion next year, and are maintaining our debt-to-equity ratio at just 1.2:1 and interest costs of only 5 per cent, which is lower than the minimum loan rate in the market,” said the company’s chief financial officer, Attapol Sariddipuntawat.

 

PRESALES ABOVE TARGET

SC Asset has adjusted its presales target for this year from Bt10 billion to Bt12 billion, having already hit Bt10 billion by the end of last month. 

The higher-than-expected full-year presales are down to a recent rise in |residential demand after last year’s severe flooding, said CEO Kree |Dejchai. 

The company’s total revenue this year will hit the original target of |Bt8 billion, he said. SC Asset posted revenue of Bt2.78 billion and a net |profit of Bt353.75 million for the |first half.

A total of Bt1 billion of the remaining 2012 presales will come from three recently completed condominium projects set to be transferred to customers in the final two months of the year, and a similar amount from existing detached-housing projects and five new ones worth a combined Bt7.55 billion that are due to be launched on Sunday. 

The five projects are: Grand Bangkok Boulevard Petchkasem-Pinklao, with 55 units worth Bt1.6 billion; Grand Bangkok Boulevard Pinklao, consisting of 48 units worth Bt1.15 billion; Grand Bangkok Boulevard Rama IX-Srinakarin, valued at Bt1.3 billion; and two projects under the Life Bangkok Boulevard brand that will be located on Ratchaphruek-Rattanathibet and Rama IX-Srinakarin, together worth Bt3.5 billion.

“We started with a soft opening [of these five projects] early this month that succeeded in bringing in presales of Bt560 million, which will be booked to revenue for this year. We also will hold a grand opening on Sunday. This will boost our presales for the year,” said Kree.

The CEO said that the company had suspended its plan to build a prefrabrication plant, having now decided that it did not fit with its business. SC Asset is, however, joining with a strategic partner for the supply of prefrabricated products to support its business.