EMC diversifies into property development
EMC, a company specialising in construction engineering and building systems, is getting into the property business, both taking over existing projects and developing new ones, in pursuit of its goal to generate more than Bt13 billion in revenue over the
In the first phase, EMC will focus on takeovers. Its targets are projects that, according to its analysis, have good potential to attract home-buyers and generate income within six months. In the following phases, the company will increase the number of projects that it develops itself.
"As for our construction business, we expect to earn Bt900 million in 2015 and maintain an annual growth rate of 10 per cent. We believe our construction business will generate no less than Bt5.5 billion for us over the next five years. The ratio of income from our property developments to our construction business will be 50:50 in 2015 and 75:25 in 2019," chief executive officer Chumpol Issarangkura Na Ayutthaya said.
Executive vice president Setthavat Tangvacharapongse said the company had drawn up a five-year plan to invest in property projects with the total value of about Bt17.4 billion.
This year, EMC will take over seven projects and develop an eighth. Together, they are worth Bt6.53 billion.
Two of the takeover projects are North Beach Resort Bangsean and the North Land Condominium project by The North Group Co, valued at Bt2.11 billion. The Station One China Town project by Imperial Land is worth Bt657 million. Siam Iyara Resort Chon Buri by Siam Bangkok Development Co has the value of Bt360 million.
The three other takeover projects are American Town, Siam Tara Mantra and Venice of the East. Developed by Siam Grand Property Co, these three projects are worth more than Bt2.15 billion.
EMC will also develop the Landmark Community Mall on a 21-rai (3.3-hectare) plot in tambon Mahachai, Muang district, Samut Sakhon province, under a Bt1.25-billion budget. The land is leased from the State Railway of Thailand under a 30-year contract. Space in the community mall will be sold from the middle of this year, with construction to be completed in late 2017.
From 2016 to 2019, EMC will invest in at least eight more projects. Featuring both high-rise and low-rise buildings, these projects will be worth about Bt10.8 billion.
EMC expects to recognise revenue of Bt1.05 billion this year. With the goal of achieving the 10-per-cent annual growth through 2019, EMC sets its sights on generating Bt13.23 billion over the next five years, Setthavat said.
