Bangkok Apartments | Bangkok Condos | Bangkok Serviced Apartments

L.P.N. buys Prinsiri land for more condos

Bangkok Post Apr 29, 2009 LH counts on ventures for profit The condominium developer L.P.N. Development has bought two plots of vacant land in the Pin Klao and Rat Burana areas from Prinsiri Plc for 500 million baht, with plans to develop more condominium projects, according to L.P.N. managing director Opas Sripayak. Prinsiri had planned earlier to develop its own residential projects but decided to sell the plots to improve its liquidity. Last year, the company sold five plots worth 827 million baht to other developers including Preuksa Real Estate Plc. Mr Opas said the 11-rai Pin Klao plot opposite Central Pin Klao shopping mall, would be developed a 2-billion-baht condominium with three to four buildings housing a total of 2,000 units. Its first phase would be launched in the third quarter of this year. L.P.N. will develop the five-rai-plot in Rat Burana into a 1,000-unit condominium worth around 1 billion baht. Both projects will sell in a price range of around 40,000 baht a square metre, or 1.1 million baht a unit for the smallest size of 26 sq m. In June, L.P.N. plans to launch its lower-priced Lumpini Condotown on a 10-rai plot in Rarm Intra Km 8, which the company spent 200 million baht to acquire. "Our development strategy in 2009 would focus on the core business of condominiums in existing locations where we already have projects and also new high-density locations," Tikhamporn Plengsrisuk, the company's chief executive officer, told shareholders at the annual general meeting. Among the new projects being launched this year, L.P.N. will introduce one-bedroom units sized at 26 sq m. "Amid the gloomy sentiment in the condominium market, there is still demand. Besides location, we have to make units more affordable to buyers. This is the key to reducing risk," said Mr Tikhamporn. Mr Opas said the company was in talks with a few landlords to develop a second condominium project in the Pracha Chuen area. L.P.N was also successful in raising its sales in April to 140 million baht a week, up from the weekly average of 100 million baht in the first two months. "Our plan will be conservative and focus on what we have the expertise in - condominiums. We will not diversify into other products or other businesses. Today is not the right time," added Mr Tikhamporn. Being conservative is also the mantra at the country's largest developer, Land & Houses Plc (LH). President Anant Asavabhokin told shareholders at the general meeting that LH would try to maintain revenue and profit at the same levels as in 2008. Mr Anant said sales in the first quarter of 2009 equalled two months' worth under normal circumstances due to an overall bearish sentiment in January. "The political issues will not end easily. Therefore, the real estate market would be bad this year. Due to LH's diversification to other businesses, our consolidated revenue would still be in good shape over the next two years thanks to our subsidiaries and joint ventures." LH has formed joint ventures or invested in subsidiaries such as the mixed-use project at the Asok intersection on which it teamed up with Singaporeans. L.P.N shares closes yesterday on the Stock Exchange of Thailand at three baht, down four satang, while LH shares closed at 3.70 baht, down 14 satang.

 

< Prev		Next >