Plans for Golden Land to realize B4,000,000,000 Baht sales
24/03/06 Kanana Katharagsiporn
Golden Land Plc [GOLD] the listed developer in Thailand, will invest around 1.8 billion baht in ongoing projects with a target to realize four billion baht in revenue this year,up 77.7% from previous year.
Chief financial officer Vanchai Sriherunrusmee said the investment would finance the development of four single-house projects worth 16.4 billion baht. The company has already recorded revenue of 7.6 billion baht from these projects while the remaining units would be sufficient for sales over the next two three years.
He said that only new project was planned for this year, 100-condominium units for rent situated in One Sathorn Square.
One Sathorn Square is a mixed development comprising The Infinity condominium for sale which is almost sold out, a condominium project for rent, a hotel, and two 40-storey office buildings with 160,000 square meter of space. All projects in One Sathorn, except The Infinity, are on 50-year leases.
Golden Land also plans to develop a villa and a hotel worth 2.5 billion baht in Krabi early next year. The company holds 110 rai of land in the southern resort province.
Meanwhile, Mr Vanchai said the company was waiting for the implementation of a new city plan before developing its Polo Park on Wireless Road, which has been delayed for two years. ”The new city plan will allow us to develop the Polo Park project with higher buildings than the current one,” he said.
The company already paid 600 million baht to lease the land for Polo Park but its owner has agreed to extend the lease contract to cover the period the company waits for the new city plan.
The project will require an investment of 2.6 billion baht of which one billion will come from the payback from its escrow account and some from project finance.
Mr Vanchai said the company had a backlog of sales of two billion baht from low-rise developments of which revenue would be booked this year and another 400 million baht from The Infinity project.
It will also receive revenue of 440 million baht from two serviced apartments, Ascott Sathorn and Mayfair Marriott.
However, the company is interested in selling the Mayfair project, in which it invested about 900 million baht, to a property fund. It is now evaluating the project value.
Golden land last year recorded 2.25 billion baht in revenue, down 36% from 2004. The group recorded a net loss of 302 million baht but said it expected to clear all its accumulated debts of 100 million baht this year.
Golden Land is now under the direction of chief executive officer William John Wilfog, who succeeded Liakat Dhanji, who resigned on October.
GOLD shares closed yesterday on the Stock Exchange of Thailand at 9.65 baht, down five satang, in total trade of 3.13 million baht.