Krungthep Land to launch two luxury projects

The company has also set aside an investment budget of Bt1 billion to buy undeveloped land over the remainder of this year and next, for residential development in 2014.

"We continue to focus on luxury residential projects because we have experience [in the segment] and demand is strong," Chawintorn Kunakornporamut, the company’s deputy director for business development, said yesterday.

Beverage tycoon Charoen Sirivadhanabhakdi’s increased investment in F&N would not affect its business, he said, adding, "We think this will be better for business in the long term."

F&N holds a 40-per-cent stake in Krungthep Land, with Property Perfect the next-largest shareholder with 20 per cent. Both Krungthep Land and Property Perfect are listed on the Stock Exchange of Thailand.

Luxury homes in demand

Demand for luxury residences, both low-rise and high-rise, has shown strong growth, especially from domestic buyers, Chawintorn said.

This demand drove Krungthep Land’s presales and overall revenue to Bt1.5 billion in the first nine months of the year. The company’s full-year target is Bt2 billion.

With this buoyant market, the company continues to focus on developing luxury residential projects with prices of more than than Bt10 million per home, he said.

The next two projects, to be launched in Bangkok next year, will be located at Soi Udomsuk off Sukhumvit Road, and at Pinklao.

The Grand Udomsuk, worth Bt2 billion, will be launched in the first quarter and The Grand Pinklao, worth Bt5 billion, in the second.

Meanwhile, the company this weekend will hold the grand presales opening for the low-rise, 52-unit phase of the Pano Rama 3 condominium.

The Pano Rama 3 has been developed by Riverside Home Development, which is a joint venture between Krungthep Land with a 51 per cent stake and F&N, which holds the remainder.

The overall project, which was launched five years ago, was divided into a 55-storey condominium, which has 345 units worth Bt4.7 billion, and a low-rise condominium.

The first phase covering only high-rise units is now 90 per cent sold, with prices originally starting at Bt90,000 per square metre. The remainder of the high-rise units are now available at Bt130,000 per square metre.

The company will also start to open presales for the low-rise phase of the Pano. The project’s Riverbank Residences will be available from Bt16 million for two-bedroom units with utilisable space of 130 square metres, through to Bt110 million for triple- size homes with utilisable space of 560 square metres.

"We also have a show unit at Bt150 million that combines 560 square metres of utilisable space," said Chawintorn.

The company has already sold 10 of the 52 units before this weekend’s grand opening, booking Bt200 million in presales, he said, adding that all the customers are Thais owning manufacturing plants, gold retail outlets and exporters who have existing homes around the location.

Krungthep Land has to date developed three residential projects worth Bt10 billion in total: the Pano Rama 3, the Grand Rama 2 and the Urban Square at Sathorn. They will generate income for the company through 2015, the executive said.

The two projects to be launched next year will generate revenue through 2016.