FRIDAY, March 29, 2024
nationthailand

Pruksa's five-year business plan targets revenue at Bt100 billion in five years

Pruksa's five-year business plan targets revenue at Bt100 billion in five years

PRUKSA REAL ESTATE has drawn up a five-year business plan to boost annual presales and revenue to Bt100 billion apiece by 2019, based on the country's economy growing by between 4 per cent and 5 per cent a year during the period.

“We have revised our target to boost both presales and revenue to Bt100 billion by 2019, now that the economy has got over the floods in 2011 and [is recovering from] the political uncertainty in 2013 and 2014,” Thongma Vijitphongpun, president and CEO of the listed residential developer, said on the sidelines of a press conference yesterday. Under the plan, Pruksa targets business growth of between 15 per cent and 20 per cent a year through 2019. The company’s investment budget will also increase by 15-20 per cent each year over the same period, with funds coming from cash flow and debenture issuance, he said.
This year, Pruksa has set aside a budget of Bt14 billion for buying undeveloped land for residential projects planned for development starting next year. Cash flow and a debenture worth Bt3 billion will account for the financing, he said. 
The developer targets presales of Bt47 billion and a similar amount in revenue this year, up 20 per cent and 10 per cent respectively from the Bt39.09 billion and Bt42.7 billion posted in 2014.
As of the end of last year, the company had a backlog of projects worth Bt34.22 billion, Bt22.86 billion of which will be booked as revenue this year, said the company chief.
As a result, the company is confident it can achieve its revenue target for the year, he added.
To achieve its five-year presales and revenue targets, Thongma said the company would expand its residential projects in Bangkok and its suburbs, as well as in the provinces, where it would focus its efforts on major provinces and those situated close to neighbouring countries.
This will serve strong demand from both local buyers and foreign investors expanding their business in Asean by using Thailand as a |gateway to other countries in |the region when the Asean Economic Community (AEC) becomes fully effective in December, he explained.
“We believe residential demand will be boosted by the country’s economic growth. 
The AEC will also boost the Thai economy and demand from foreigners expanding their investment in the region. This will boost the country’s property market to strong growth of between 5 and 10 per cent a year,” he said.
Based on this growth forecast, Thongma said Thailand’s residential property market would achieve a value of about Bt800 billion |in 2019, split equally between greater Bangkok and the provinces.
The market is currently worth about Bt600 billion a year, also divided 50:50 between Bangkok and its suburbs, and provincial areas.
 
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