Bt1-bn property fund to be launched in second quarter
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Property Perfect plans to issue a property fund worth Bt1.07 billion in the second quarter of this year after its dormitories, Uniloft in Chiang Mai and Salaya at Nakhon Pathom, are completed and start operations this year.
The company’s business development director, Yingpong Kasemsin, said that the property fund would guarantee returns of 6.5 per cent in the first four years. Income will be generated from its two dormitories, which have an occupancy rate of about 50 per cent at the time of the university semester.
However, the company believes that the occupancy rate would achieve 90 per cent when the universities open.
The company will spend money from the fund to develop residential projects this year. It plans to launch 21 projects worth Bt27.55 billion this year. This fund also will reduce its financial cost by about 0.25 per cent from an average cost of about 5 per cent. This is a part of its plan to reduce its debt-to-equity ratio from 2.2:1 to 1.5:1 this year.
“Our survey two years before opening our two dormitories showed that there was strong demand in the market when compared with the supply. If we receive positive feedback, we plan to open the same concept in other university locations such as Khon Kaen, and Songkhla,” Saranyu Ngowsirimanee, the company’s senior manager, said.
Meanwhile, the company also plans to launch Uniloft Condo to cater to the demand of customers who want to buy for residential purposes units with the same design and at the same location as its dormitories. The first two Uniloft Condo projects will be located on Salaya and Bang Na, close to Assumption University, worth Bt2.1 billion. They will have a combined 1,500 units – 500 at Salaya and 1,000 in Bang Na. They will be launched in the last quarter of this year, with prices starting at between Bt1.5 million and Bt1.6 million per unit. The company also plans to launch three new Uniloft Condo projects worth at least Bt3 billion in 2014 at Salaya, Bang Na and Chaeng Wattana.
Up to 25 per cent of customers for Uniloft Condo will be investors who need to buy and offer on rent. The rest 75 per cent will be buyers who want to buy for residential purposes, he said.
Saranyu said the company’s business plan to develop Uniloft will be split into three types: Uniloft at public universities priced at between Bt7,000-Bt10,000 per month; provinces priced at between Bt6,000 and Bt9,000 per month, and international university, which will offer a price range between Bt9,000 and Bt20,000 per month.
“Our business strategy is to be an integrated property developer who develops residences for sale and for rent, plus the hospitality and retail business, targeting average rental income of 10 per cent and 20 per cent a year in the long term. Dormitory is the first business for rent. Our hospitality business in Japan will start operations this year after approving the hotel management in July,” Saranyu said.
Property Perfect has four businesses – developing residences for sale both low-rises and condominiums, dormitories, hospitality in Japan, and there are plans to enter the retail business this year.
