Magnolia plans 5 properties at Bt11 bn

Half of the budget will come from existing cash flow and capital; the rest will come from bank loans.
The company’s managing director, Visit Malaisirirat, told a news conference yesterday that about Bt6 billion, or more than half of the total investment budget, would be spent on a mixed-use project called Magnolias Ratchadamri Boulevard, which will comprise a 325-unit condominium complex and a 170-room luxury hotel.
Hilton Worldwide Hotels and Resorts will manage the hotel under a 30-year contract.
The remaining Bt5 billion will be allocated to the development of four new residential projects in Bangkok and Khao Yai, Nakhon Ratchasima province.
“Our new luxury hotel will be under the Waldorf Astoria brand; it is the second project by Hilton Worldwide to use this brand in Asia. The first is in Shanghai,” he said.
The Magnolias Ratchadamri Boulevard project will be developed and managed by Magnolia Finest Corp, which is 75 per cent owned by Magnolia Quality Development, with Maneeya group holding the remainder.
Magnolia Finest has paid-up capital of Bt550 million. The company plans to increase this to Bt1.6 billion this year. For this project, the firm has secured a loan of Bt3 billion from Kasikornbank.
The company will start construction in the second quarter |of this year after the project’s environmental impact assessment is approved.
Magnolias Ratchadamri Boule-vard is close to the Grand Hyatt Erawan hotel on Rajdamri Road. The project sits on six and a half rai (1 hectare) leased from the Crown Property Bureau for 30 years. It is due to be completed in 2014.
The company plans to open presales on its condominium project in the second quarter of the year.
Visit declined to disclose the prices. Condominiums available under long-lease contracts at similar locations on Rajdamri Road now fetch sale prices of Bt200,000-Bt300,000 per square metre.
The next three launches the firm plans this year will be detached-housing projects priced at Bt10 million to Bt25 million per unit. One of them is on Bang Na-Trat Road, one is in Khao Yai, and the firm is negotiating to buy land for the third, as well as for another condominium project.
Visit said the company planned to spend another Bt700 million to Bt800 million to buy two new plots to develop residential projects this year.
From its aggressive investment plans this year, the company targets presales worth Bt2.7 billion, which are expected to generate revenue |of between Bt1.7 billion and Bt1.8 billion, more than double its revenue of Bt630 million last year, Visit said.