Ananda plans Bt20 bn projects in second half
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ANANDA DEVELOPMENT, confident of the continuing strength of residential demand, plans to launch condominium projects worth more than Bt2 billion over the remainder of the year.
ANANDA DEVELOPMENT, confident of the continuing strength of residential demand, plans to launch condominium projects worth more than Bt20 billion over the remainder of the year.
At least Bt6.5 billion of the total is for a project being developed by its joint venture with Sea Investment Five, a subsidiary of Japan’s Mitsui Fudosan Residential, said the listed company’s president and CEO, Chanond Ruangkritya.
Although the country’s economic growth is showing signs of slowing in the second half of the year, this has not affected residential demand, especially for condominiums located close to Bangkok’s BTS Skytrain and MRT underground systems.
“Our project launches in the second half will be located within 100 to 600 metres of the mass-transit system,” he added.
The company’s transfer rate of about 99 per cent shows the company has quality customers who buy a property in which to stay or for investment purposes, and not speculators, Chanond said.
“We have a rejection rate, where we cannot transfer to customers, of only 1 per cent, and up to 40 per cent of our customers pay by cash. As a result, we believe we will achieve our revenue target this year,” said the company head.
Ananda’s 2013 revenue is expected to be double last year’s level, comprising transfers of both condominiums and detached housing worth at least Bt12 billion.
The projects in question comprise four Ideo Mobi estates worth Bt6.7 billion, an AD2 project worth Bt2.8 billion and seven Atoll projects worth Bt2.5 billion.
The company, which reported revenue of Bt5.14 billion and a net loss of Bt287.45 million for last year, posted revenue of Bt1.05 billion and a net profit of Bt4.88 million for the first quarter of this year.
Ananda also plans to issue securities worth US$200 million (Bt6.2 billion) by year-end to support its investment plan in the second half of this year and during 2014.
The proposed issuance will be put to the company’s shareholders at a meeting on August 16.
“Our new securities will be to fund business expansion in the long term, and also to manage our debt-to-equity ratio at not more than 2:1, given our huge investment this year and next,” said Chanond.
The company’s current debt-to-equity ratio stands at just 1.04:1.
