The company is a joint venture between Singapore-based CapitaLand, which holds 40 per cent, and TCC Land Co Ltd, the property arm of liquor tycoon Charoen Siriwadhanabhakdi, which holds 60 per cent.

Soammaphat Traisorat, chief executive of TCC Capital Land, said yesterday that the capital increase would not affect the company's shareholding structure.

He said the company had to invest about Bt2.5 billion per year to buy land in the central business district and elsewhere in Bangkok to develop an average of four to five projects.

"Our revenue now is not enough to expand our business because we started to sell our projects only last year," he said. "However, our operation will start to recover next year when our four condominium projects are completed and transferred to customers. That will generate revenue of up to Bt10 billion, which will be enough to expand our business from our own income."

TCC Capital Land has four condominium projects worth up to Bt10 billion. They include Athenee Residence on Wireless road, where sales have reached 90 per cent of project value; Villa Rachakhru, which is now totally booked; and Empire Place on Sathorn road and The Empoiro Place-Sukhumvit 24, both of which have sales equal to 60 per cent of project value.

The company recorded revenue of Bt600 million from bookings at Athenee Residence last year. It earlier announced that it had taken in revenue of Bt1 billion in the first four months of the year from all four condominium projects and expects its take to reach Bt2 billion by the end of this year.

Soammaphat said the company planned to purchase two new parcels of land worth Bt200 million each for development next year.

One will be located near the central business district, and this will become a new luxury condominium project.

The other plot of land will be far from the central business district, but near to an expressway or main road. It will see the development of a luxury detached-home project.

"Our plan is to develop condominiums in prime locations near the central business district, and detached-home projects far from the central business district but near the main roads, such as Kaset-Nawamin road," Soammaphat said.

TCC Capital Land plans to launch another three projects worth Bt6 billion in the second half of this year. The first, a detached-housing project called "The Royal Residence", worth Bt2 billion, will be located on Kaset-Nawamin road. It will offer unit prices between Bt40 million and Bt120 million.

Half of the 48-hectare plot on Kaset-Nawamin road will be taken for the housing project, and the rest will be developed by TCC Capital Land as a retail area, Soammaphat said.

The second project is located in Pattaya, and will be an integrated residential project worth Bt2 billion. It will include single-family homes, condominiums and villas. The third project will be on Phya Thai road, and will be a condominium worth Bt2 billion.

Soammaphat said demand for luxury homes and condominiums had continued to grow, while demand in the middle market had fallen. As a result TCC Capital Land will continue to offer luxury houses and condominium projects.

The company will maintain its return on investment averaging 20 per cent per project. To achieve this at a time when production costs are being forced up by rising oil prices, the company will manage its costs by speeding up construction and fixing prices with contractors, Soammaphat said.

 Somluck Srimalee

 The Nation