SC Asset Corp details Bt12-billion capital expenditure plan
Play
SC ASSET Corporation, the property arm of the Shinawatra clan, plans to invest Bt12 billion to buy land worth Bt5 billion and Bt6.4 billion to develop 10 residential projects worth Bt24 billion and one office building worth Bt600 million this year.
The office building on Phahon-yothin Road will offer 12,000-13,000 square metres of rental space, chief executive officer Nuttaphong Kunakornwong told a press conference yesterday.
Half of the capital-expenditure budget will come from its internal cash flow and the rest from bank borrowings and the Bt3-billion debenture issuance planned for this year.
Up to Bt2 billion in proceeds from the three- or five-year debentures will be used pay back debentures maturing this year. The remaining Bt1 billion will go to the residential projects.
“We have to maintain our debt-to-equity ratio at not over 1.5 times. This will be healthy for our business,” he said.
The company is negotiating to set up a joint venture to develop residential projects with its strategic partners from China and Japan. The talks have been going on since last year.
This would support its business plan to drive revenue to Bt20 billion by 2019.
This year, the company targets both presales and revenue at Bt15 billion. Up to Bt4 billion of its revenue will come from its backlog of completed units ready for sale and waiting to be transferred to customers.
Half of its Bt8-billion backlog will be transferred to buyers this year and the rest in the next two years.
Last year, the company’s presales surged 47 per cent to Bt12.51 billion.
The rest of its revenue this year will come from its 33 existing projects worth Bt24 billion that have already been marketed and the 10 new residential projects, three of which will come out this quarter.
Two of the new projects are condominiums worth Bt11 billion. The others are detached-housing and townhouse projects worth Bt13 billion. Up to 90 per cent of the new residential projects will focus on the luxury segment with prices over Bt8 million per unit.
The company sees strong demand in this segment, Nuttaphong said.
