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property

Sansiri and JV with BTS to launch 10 projects this quarter


SANSIRI and its joint venture BTS Sansiri Holding Co will launch 10 residential projects worth Bt21.5 billion this quarter to boost presales to Bt33 billion for this whole year.

Six projects will be under Sansiri. Five are detached-housing projects worth Bt8 billion and one is a condominium. 
The other four projects are condominiums to be developed by BTS Sansiri.
“The condo projects developed by myself and our joint venture are worth a combined Bt13.5 billion,” Uthai Uthaisangsuk, senior executive vice president of business development and high-rise project development, told a press conference yesterday.
Also yesterday, BTS Group Holdings reported to the Stock Exchange of Thailand the sale of half of its 100-per-cent stake in Nuvo Line Agency Co to Sansiri for Bt769.01 million.
Nuvo owns land and a property project on Phaholyothin Road in Chatuchak district. 
This transaction is based on negotiations with Sansiri to set up a joint venture to develop residential projects worth up to Bt100 billion from 2015-19. 
Uthai said the company and its JV had logged Bt20.5 billion in presales in first nine months of this year, of which Bt12.8 billion was from Sansiri and Bt7.7 billion from the JV. The company has to boost its presales by up to Bt12.6 billion this quarter, half from Sansiri and half from the JV, to drive combined presales to this year’s target.
The company has set aside a marketing budget of about 2 per cent of its presales target for the rest of this year, or Bt252 million. 
“We are confident the property market will recover in the last quarter of this year thanks to the government’s policy to inject investment to boost the country’s economy,” said Metha Angwatanapanich, senior executive vice president of business development and low-rise project development. 
“This will help raise the purchasing power to buy homes,” he said.
The company has offered more promotions to speed up its sales this last quarter, he said.
It is also confident that its revenue will achieve the target of Bt35 billion this year after it succeeded in transferring units to its customers worth Bt27 billion in the first nine months, Uthai said. 
In the first half, the company earned Bt1.4 billion on revenue of Bt17.13 billion.
About Bt18 billion of its Bt32.9-billion backlog is ready to transfer to customers in the second half, divided into Bt10 billion for the third quarter and Bt8 billion for the final quarter, Metha said.
The mortgage-rejection rate for the company’s buyers was only 10 per cent in the first nine months. This is better than 15 per cent last year, he added.
 

Published : October 07, 2015

By : SOMLUCK SRIMALEE THE NATION