AP to develop 10 condo projects worth Bt22 bn
AP (Thailand) is introducing 10 new condominium projects worth Bt22.37 billion, out of the total of 24 residential projects worth Bt41.98 billion planned for this year, to boost condo presales by 50 per cent over last year's level.
Chief marketing officer Vittakarn Chandavimol yesterday introduced Rhythm Sathorn, a condominium decorated by Japanese designer Naoto Fukusawa. Vittakarn said overall condo presales should account for Bt16.7 billion of AP’s total presale target of Bt30 billion this year.
"Our 10 new condominium projects are close to the mass-transit system. This is the theme of our condominium projects this year," he said.
To date, the company has developed 50 condominium projects in Bangkok comprising 27,000 units and 2 million square metres in total area.
The company has budgeted Bt20 billion to develop 24 new residential projects worth Bt41.98 billion this year. A total of Bt8 billion will be used to buy land, and the remaining Bt12 billion for construction of the projects’ infrastructure.
This investment budget will come from internal cash flow, bank loans and a debenture issue worth Bt3.5 billion.
Most of this debenture will be used to replace an earlier one that will expire this year, worth Bt3 billion, with the remaining Bt500 million going towards the investment budget.
"We are confident that the market will recover, especially the demand for condominiums," Vittakarn said.
This year’s revenue is targeted at Bt25.3 billion, up 10 per cent from last year, he said.
Last year, AP recorded presales worth Bt22.67 billion, up 49.3 per cent from the 2013 presales value of Bt15.18 billion. It reported revenue of Bt23.2 billion and net profit of Bt2.6 billion, up 15.6 per cent and 30 per cent respectively from 2013.
