Property Perfect looking to seal 2-3 JVs in H1
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PROPERTY PERFECT is negotiating with Thai and Japanese firms to form two or three joint ventures for developing hospitality, retail and residential projects, with the deals expected to be sealed in the first half of the year.
Property Perfect looking to seal 2-3 JVs in H1
SOMLUCK SRIMALEE
THE NATION
PROPERTY PERFECT is negotiating with Thai and Japanese firms to form two or three joint ventures for developing hospitality, retail and residential projects, with the deals expected to be sealed in the first half of the year.
“We have to find strategic partners for our expansion in the long term,” Chainid Adhayanasakul, chief executive officer, told a press conference yesterday.
“Now the property market faces stiff competition from big conglomerates such as TCC Land by beverage tycoon Charoen Sirivadhanabhakdi, Singha Group, Central and CP Land.
“They have been aggressively investing in both residential and commercial property markets since last year.”
The prospective partners are both local corporations with retail and hospitality expertise and the top three property firms in Japan.
The company and its subsidiary Grande Asset Hotel and Property have set aside a Bt5-billion investment budget to buy land for developing residential and hotel projects this year.
Up to Bt3 billion will be used by Property Perfect to buy land for developing residential projects this and next year.
This year, the company plans to launch 17 residential projects worth Bt24.04 billion, consisting of 12 detached-housing and townhouse projects worth Bt16.81 billion and five condominium projects worth Bt7.2 billion.
Property Perfect also targets Bt16 billion in presales and Bt20 billion in revenue this year, up 67 per cent from its estimated revenue of Bt11.95 billion last year.
Up to Bt16.5 billion of its total revenue this year will come from sales of its residential projects, Bt2.5 billion from its hospitality business including the investment in Grande Asset and its Japanese hotel Kiroro Resort, and Bt1 billion from land sales.
Grande Asset will spend Bt2 billion to buy land for developing two hotels and one condo project worth a combined Bt8.8 billion. The two new hotels worth up to Bt2.4 billion will be located in two tourist destinations – Phuket and Rayong.
The condo worth Bt4 billion will be located in Bangkok’s central business district, said Wilawun Leongnarktongdee, assistant to the CEO, who covers the investment of Grande Asset.
Grande Asset targets revenue of Bt2.3 billion this year – Bt1.3 billion from the hotel business, Bt500 million from its Hyde Sukhumvit 11 and 13 condo projects and Bt500 million from selling its Sheraton Hua Hin Resort and Spa to its Bt2 billion real estate investment trust set to come out this year, she said.
Half of the investment budget will be financed by the company’s internal cash flow, proceeds from the REIT worth Bt2 billion and debentures worth Bt4.4 billion.
Property Perfect plans to issue debentures worth Bt2.4 billion and Grande Asset to issue debentures worth Bt2 billion, said Sirirat Wongwattana, chief financial officer of Property Perfect.
