Ananda budgets Bt10 billion for land, new condo developments
Ananda Development has set aside an investment budget of about Bt10 billion to buy land and develop residential projects in the 2013-14 period.
Of that amount, Bt3 billion will be used to buy undeveloped land and the rest to develop its projects, president Chanond Ruangkritya told The Nation yesterday.
Half of the investment budget will come from the company’s cash flow, and the rest from bank loans. This is in keeping with the company’s policy to keep its debt-to-equity ratio at 1:1 or lower.
Currently, the ratio is only 0.3:1.
"We will issue a debenture in the last quarter of next year," he said.
Ananda plans to launch six condominium projects worth Bt23.8 billion next year. Most will be close to Greater Bangkok’s mass-transit system.
The firm targets revenue growth of 25 per cent over this year, he said.
Chanond said that after the company succeeded in raising its capital via the Stock Exchange of Thailand by Bt5.36 billion early this month, it started following its business plan. This included acquisition of 6.48 million shares worth Bt1 billion in Ananda Development One Co from a foreign partner. It thereby acquired low-rise residential projects worth Bt7.3 billion. This will generate return for the company in 2013.
The company has also paid back Bt3 billion in debt that had been guaranteed by its condo projects.
These are worth Bt13.4 billion, of which Bt8.4 billion worth have been sold and will be transferred to customers in the new year; the rest of the condos are ready to sell.
Under the business plan, the company will have a backlog – projects already sold and waiting for transfer to customers – worth Bt12 billion that will be booked as revenue in 2013.
This will improve its financial results to generate net profit next year, he said.
Ananda Development reported revenue of Bt5.66 billion and a net loss of Bt317 million in 2011. It targets revenue of Bt5.83 million and a net loss of Bt262 million this year.
However, the company’s financial plan as proposed to the SET when filing to be a listed company targets revenue of Bt9.26 billion and net profit Bt1.4 billion in 2013.
