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PF slows pace of large condominium investments

Bangkok Post Mar 5, 2009

Property Perfect (PF) will delay its large condominium investment in the first half of the year while it expects its new low-rise projects to help generate revenue quickly this year, says Sirirat Wongwattana, a director and assistant chief business development officer.

Ms Sirirat said that as demand for condominiums this year remained uncertain in the face of poor economic sentiment, the company decided not to rush into investing in its high-rise condo projects due to the long construction period of two to three years.

"We need to keep an eye on the condo market this year to make sure when demand will resume," Ms Sirirat said.

"It's too risky for large investments when consumers need to see finished products before making a decision."

PF last year planned to launch two condo projects worth a combined 2.748 billion baht, but development was postponed due to economic uncertainties.

The project in Sukhumvit might be delayed up to two years while another one in Ratchada is due for construction around the end of this year.

In 2009, PF plans to launch four new projects worth a combined 7.326 billion baht including 402 detached houses in Ratchapruek, 321 townhouses in the Sathon area, 114 detached houses in Ramkhamhaeng 164 and 319 detached houses in Pattanakarn.

"New projects are due to be completed by year-end and thus we expect to realise about one billion baht from our four new projects this year," she said.

PF aims to realise revenue of eight billion baht this year, up 6% from 7.5 billion in 2008. About 1.2 billion baht is expected to be realised from its current total backlog of 1.6 billion baht, one billion each from selling land plots to the University of the Thai Chamber of Commerce and old projects. It currently has 14 ongoing projects, worth about 39.5 billion baht.

In the first two months, the company generated presales of 1.04 billion baht, up 26% from the same period last year. Last year, it recorded 7.538 billion baht in sales, up 20.3% from 2007 with net profit rising 95% to 803 million baht.

It plans to issue debentures worth 3.2 billion baht over the next three years, with the first lot of 500 million baht to be launched in the second quarter.

PF shares closed yesterday on the Stock Exchange of Thailand at 2.32 baht, up six satang, in trade worth 5.19 million baht.