Supalai budgets Bt6 billion for land purchase, foreign venture
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24 local projects, investment in Melbourne on the cards next year
Residential developer Supalai has budgeted Bt6 billion to buy land and expand overseas next year.
Up to Bt5 billion will be spent to buy land to develop at least 24 residential projects worth Bt30 billion and Bt1 billion to invest overseas, especially in land in Melbourne, Australia, to develop a residential project for sale, president Prateep Tangmatitham said yesterday.
The capital-expenditure budget will be funded out of internal cash flow, bank borrowing and possibly debenture issuance, he told a press conference to launch the company’s 23rd project this year, the Supalai Veranda Ratchavipha-Prachachun condominium worth Bt4.3 billion.
The company targets revenue to grow by more than 15 per cent next year from targeted revenue of Bt14 billion this year.
The company has projects ready to sell and waiting to be transferred to customers when construction is completed worth Bt37 billion, of which at least Bt20 billion of units will be transferred next year.
In the first nine months of this year, Supalai earned Bt1.12 billion on revenue of Bt5.9 billion.
Eight of the 24 projects to be launched next year will be condos. The rest will be detached-housing and townhouse projects.
At least seven projects will be in the provinces, including one each in Ubon Ratchathani and Nakhon Ratchasima.
Overseas, the company will join with an Australia firm to bid for land in Melbourne. That may start next year. This is the second project abroad after the company took over an office building worth nearly Bt1 billion in Manila early this year.
Overseas stakes
“Our investment overseas will not exceed 10 per cent of our total assets. That will help us to manage our business risks. It is also part of the diversification of our business when domestic demand shows low growth. This is the way to balance our business in the long term,” Prateep said.
Supalai lowered its presales target for this year from Bt24 billion to Bt20 billion after noting the softness in purchasing power, but still believes it will achieve its revenue target, managing director Atip Bichanond said.
“Although our revenue in the first nine months of this year came in lower than estimated, our backlog worth at least Bt6 billion will be transferred to our customers this quarter. This will boost our revenue to the target this year,” he said.
