MBK plans mixed-use project in Pathum Thani as it ups focus on property development
Trade, property and retail conglomerate MBK plans to develop a mixed-use project worth Bt10 billion on 77 rai (12.3 hectares) of land in Pathum Thani province next year, after launching its latest condominium project - the Bt3.2-billion Quinn Condo Ratcha
Suvait Theeravachirakul, president and CEO of the listed company, yesterday said that MBK’s main business strategy this year and next was to focus on developing condominiums and low-rise projects for detaching housing and townhouses, on the back of its successful retail business.
Some 30 per cent of MBK’s revenue is from retail, a similar amount from rice trading, 20 per cent from hotels, 10 per cent from financial business, and the remaining 10 per cent from property and other operations.
He said the government’s policy of pledging price at Bt15,000 per tonne had impacted directly on the company’s rice business by causing it to shoulder higher costs, resulting in a drop in its net profit from part of the business.
As a result, MBK must expand its investment in a new market segment by focusing on the development of housing for sale, said the company chief.
Quinn Condo
The Quinn Condo Ratchada – the latest project developed by its subsidiary, Plan Estate – was launched earlier this month and has already sold 50 per cent of its total project value of Bt3.2 billion.
The company targets all units in the condominium being sold by the middle of next year.
Following this project, the company plans to develop a Bt10-billion mixed-use project in Pathum Thani and two new residential projects: a Bt800-million condominium on Bangkok’s Rama IX Road, and a detached-housing project in Phuket with homes costing more than Bt15 million apiece.
With its expansion in property business, Suvait said the company targeted the revenue contribution from residential projects increasing from 8 per cent currently to 12 per cent within three years.
This represents an expected rise in annual residential business income from just Bt800 million at present, to Bt2 billion by 2015.
Meanwhile, the company targets overall revenue of Bt10 billion this year, following the sale of land on Koh Samui and in Pattaya, and the sale of a part-share in The Erawan Group.
The latter will generate extraordinary income of Bt3 billion, which will be booked to the company’s account this year, he said, adding, “If we do not have the extraordinary income, the group’s revenue will grow by between 5 and 6 per cent from Bt9.2 billion last year.”
MBK reported revenue of Bt7.04 billion and net profit of Bt2.68 billion for the first half of the year.
