Property Perfect, unit seek Bt11 bn for growth
PROPERTY Perfect and its subsidiary Grand Asset Hotel and Property, which are both listed developers, plan to raise Bt11.41 billion this year by increasing registered capital, issuing debentures, establishing a real-estate investment trust (REIT) and selling land.
The goal is to drive the firms’ revenue to Bt22.05 billion, 50 per cent higher than their combined income of Bt14.66 billion last year.
Under the capital-raising and debenture-issue plan, Property Perfect will increase its capital by Bt1.3 billion via a share sale under private placement, and issue a Bt2-billion debenture.
Funds raised will be used for the company’s business expansion through the launch of 16 residential projects worth Bt22.19 billion during the course of the year.
Meanwhile, Grand Asset Hotel and Property will increase its registered capital by Bt2.11 billion and issue a debenture worth Bt2 billion to serve its own expansion this year.
Property Perfect’s chief executive officer, Chainid Adhyanasakul, said at a press conference yesterday that the company also planned to set up a REIT worth more than Bt2 billion by selling its hotel business – the Sheraton Hua Hin – to the trust.
The company also intends to sell land worth up to Bt2 billion this year.
“Funds raised under our business plan will be spent on business expansion this year for both Property Perfect and Grand Asset Hotel and Property. The funds will also enable us to reduce our debt-to-equity ratio to 1.6:1 by the end of the year,” he explained.
Eleven of Property Perfect’s planned residential projects this year are for detached housing, with the other five being for condominium development.
Grand Asset Hotel and Property, meanwhile, plans to launch a Bt4.7-billion mixed residential project combining condominium units and villas this year.
In light of the business expansion, the group targets combined presales worth Bt18.3 billion and revenue worth Bt22.05 billion this year, with Bt14.5 billion of the revenue contributed by Property Perfect and Bt7.55 billion by Grand Asset Hotel and Property, Chainid said.
The group is confident that the property market will recover this year from last year’s downturn, and will be driven by the government’s policy to expand investment in infrastructure projects, especially the rail system, the CEO said.
“The market will be stable in the first half of the year, but the latter half will see strong growth,” he predicted.
