LPN Development eyes 13.5% boost in revenue this year

Up to Bt3 billion will be used to buy land for developing condos this year and next. 

The other Bt7 billion is for constructing infrastructure for the 10 new condos this year.

More than 60 per cent of the budget will be funded from internal cash flow and the rest from project loans extended by commercial banks.

“We believe that the condo market will recover strongly in the first four months of this year before the government’s measure to boost the property market expires at the end of April. We expect up to 65,000 new condo units to be launched this year, up 8 per cent from 60,017 last year,” managing director Opas Sripayak told a press conference yesterday.

The company expects to transfer condos worth up to Bt10 billion in the first four months of this year.

It has a backlog worth Bt11 billion of units pre-sold to customers and waiting to be delivered to them when construction is completed. 

Up to 60 per cent of the backlog will be handed over to customers this year and the rest next year.

It has inventory worth Bt5 billion of condos for sale that are ready for occupancy.

“We believe that our backlog and our inventory will generate revenue of Bt10 billion in the first four months of this year,” he said.

The company also targets Bt17.6 billion in presales from its 10 new condo projects launched this year.

“Our 10 new condo projects are in Bangkok and the suburbs. We have no plan to launch condos upcountry, where we see slow demand,” Opas said.

Last year, the company transferred condos worth Bt15.5 billion to customers. 

That was lower than its estimate of Bt16 billion, but was still 19.7 per cent higher than its total revenue of Bt12.95 billion in the previous year, he said.