Property developer Quality Houses Plc plans to pour up to Bt11.5 billion through 2008 into building more office buildings, serviced apartments and residential projects.

The company's senior executive vice president, Suwanna Buddhaprasart, said yesterday that the investment push began with the purchase of land this year for new residential projects valued at between Bt3 billion and Bt4 billion.

Also it will spend Bt1.5 billion this year buying land and constructing new serviced apartments in Bangkok's central business district, which will open in 2008, and a further Bt3 billion to buy new land for residential projects that will break ground next year.

To help pay for the substantial investment slate, the company will launch a property fund worth up to Bt4.5 billion, reviving a plan it suspended last year.

 Suwanna said that the company planned to raise cash via the property fund in the second half of this year. The property fund will buy the Q-House Lumpini building, which is now complete and has an occupancy rate of 50 per cent of its total 59,000 square metres of office space

"We will continue to hold at least 33 per cent of the value of the property fund and that will maintain our ownership and also generate operating capital for the company," she said.

The property fund will speed up the company's expansion efforts, especially in new office buildings and serviced apartments.

"Using our assets to raise funds from the market is better than raising funds by increase the company's capital," she said.

Most foreign firms, law firms, commercial banks and other

service businesses have conti-

nued to expand and this will

drive the demand for office

space.

Residential projects have also continued to grow this year. As a result, Quality Houses has continued to invest in serviced apartments and office buildings to create rental income, Suwanna said.

The company recorded sales of Bt8 billion and a net profit of Bt823 million in 2005. Eighty-five per cent of its revenue came from residential developments and the remaining 15 per cent from rental income.

At present, Quality Houses Plc owns and operates five serviced apartment buildings and five office buildings. Most of them are located in the central business district and their occupancy rate averages 86 per cent.

Suwanna said the company expected its rental income to climb to Bt1.4 billion this year and revenue from residential projects to reach Bt8 billion, up 11 per cent on last year.

Somluck Srimalee

The Nation