LPN plans 16 new projects this year

This will boost its pre-sales revenue to Bt16 billion, up 14 per cent from Bt14.2 billion last year. Total revenue will rise to Bt13.2 billion this year, up 10 per cent from Bt12 billion last year, the company’s managing director, Opas Sripayak, said at a press conference after the grand opening of its third condominium project in Pattaya last week.
Half of the investment budget will come from the company’s cash flow and the rest will be borrowed. The company has a debt-to-equity ratio of only 0.5:1, and has more room to borrow from banks to serve its business expansion this year.
Currently, the company has a backlog of Bt14 billion – Bt11.5 billion will be added to the company’s revenue this year and Bt2.5 billion will accrue in 2013.
Five of 16 new residential projects launched this year, worth totally Bt1.5 billion, will be townhouse projects. This is the first time after the 1997 economic crisis that the company is developing townhouses for sale. One of five is ready for presale: the Lumpini Town Place Ratchayothin-Sena, worth Bt400 million, has only 71 units with prices starting at Bt4.5 million per unit. The next one, Lumpini Town Residence, will open for presale in February, with prices starting at Bt9 million per unit. This project has only 46 units. The other three projects will be launched in the second half of this year, developed by its subsidiary – Pornsanti Co – in which LPN Development holds a 100-per-cent stake.
Meanwhile, the next 11 projects worth Bt16 billion will be condominium projects, three of them located at beach destinations – Pattaya, Hua Hin, and Chon Buri. The other eight projects will be in Bangkok –Sukhumvit 77, Sukhumvit 109, Sukumvit road, Bang Na, Ratchayothin, Rattanathibeth, Ramkhamhaeng, and Ratchaburana.
The company is also launching its innovative condominium project under the concept of Value Creator. It is developing a part of its condominium project Lumpini Ville Naklian-Wong Amart – from fourth to sixth floors – as condominiums for senior members aged over 50. It is aimed at serving the demand of senior people. The rest of the project targets working people and children.
“This is our new model for the business in the future – creating valuation for our business by catering to people of all ages in a family under the concept of mixed target development. If our pilot project succeeds in Pattaya, we will launch the same concept in our other projects,” he said.
Opas said the company believes the demand to buy condominiums has continued to grow after the floods hit Bangkok and its suburbs last year. Some who have purchasing power will buy a condominium to be their second home to move their family when hit by floods. Some have also changed their idea of buying a low-rise residence due to the fear of natural disasters.