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Developers allay construction concerns |
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Wednesday, 25 June 2008 |
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source: Bkk Post June 24 2008
The condominium developers Ananda Development Co and Metrostar Property Plc have
assured buyers that they will receive their units and that construction has
already begun.
The developers were responding to rising concerns
that high building-material prices could compel some contractors to abandon jobs
rather than lose money.
Ananda Development, with condominiums under the Ideo brand, said it had already
signed construction contracts worth 3.5 billion baht with reliable contractors
to develop its seven projects.
Its contractors include Power Line Engineering to build Ideo Lat Phrao 17, Lat
Phrao 5 and Ideo Mix Phahon Yothin; Christiani & Nielsen to build Ideo
Sathorn-Taksin and Ideo Mix Sukhumvit 103. It also hired RTH Construction Co to
build Ideo Q Phayathai and Italian-Thai Development Plc to construct Ideo
Ratchada-Huai Khwang.
Ananda CEO Chanond Ruangkritya said rising construction material prices would
not affect the company's sales target of 10 billion baht this year. Ananda is
confident that it would be able to deliver units for its first project in Lat
Phrao 17 by the middle of next year.
Ananda launched eight Ideo projects near mass-transit routes and has closed
sales of three projects.
Metrostar CEO Veera Buraphachaisri said his company had already signed contracts
for foundation construction and next month would obtain contractors for its two
major projects, Metro Avenue Ratchayothin and Sukhumvit 66. Both projects
received environmental approval two months ago.
The company said 30% of sales in its Sukhumvit project and Ratchayothin projects
had been closed.
The company has already raised its prices by 20% and has suspended sales until
it has completed a cost assessment in August.
Metrostar anticipates it would earn at least 960 million baht from selling a
land plot of more than four rai on Sathon Road, with bidding prices starting
from 550,000 baht per square wah. The deal is likely to be completed in the near
future.
Mr Veera said the company was focused on preparing to open its serviced
apartment, Sathorn Vista Marriott Executive Apartment in September. The
apartment, located on Suan Plu Road, would have around 18,000 square metres of
living space to be rented out at 1,400 baht per sq m per month. It expects 50%
occupancy in the first six months.
Metrostar shares (METRO)closed yesterday on the Stock Exchange of Thailand at
2.54 baht, up 20 satang, in trade worth 69.47 million baht.
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