President and CEO David R Nardone said the new investment would serve the forecast continued growth of the two businesses.

Of the total investment, Bt500 million will be drawn to purchase a land bank for business expansion of Hemaraj Eastern Seaboard Industrial Estate (ESIE) and other project developments. In addition, Bt750 million will spent on construction, Bt250 on small and medium-sized factories and the remaining Bt1 billion to complete its condominium project The Park in Bangkok.

"We have a Bt500-million-to-Bt1-billion cash flow to facilitate the investment now. The company will also have an expected cash surplus of Bt2 billion after its residential projects are transferred to clients in the middle of this year," Nardone said.

The company has also set aside a budget of Bt500 million to Bt1 billion for property development. The money will facilitate potential projects in office buildings, condominiums and residential housing.

Nardone added that the company had to concentrate on market perception to ensure profitability. "Niche-market projects also have a great potential for investment," he said.

The company is still focused on both industrial estates and the independent power-producer (IPP) business. It is interested in joining IPP bidding and hopes to win a bid next year.

To serve business expansion, the company has set up a five-year management plan (2009-2013) for industrial business with a total revenue target of Bt10 billion by the end of the plan. Industrial estates will make the biggest contribution, followed by utilities fees in industrial estates and property.

"The plan has been designed to focus on sustainable and profitable growth. Those three key businesses enjoy an average annual growth of 20 per cent every year," Nardone said, adding that the plan forecast company revenue to achieve sustainable growth of 30-40 per cent a year.

The company manages six industrial estates: Eastern Seaboard In-dustrial Estate in Rayong, Hemaraj Eastern Seaboard Industrial Estate and Hemaraj Eastern Industrial Estate in Map Ta Phut, Rayong, Hemaraj Chonburi Industrial Estate, Rayong Industrial Land and SIL Industrial Land in Saraburi.

Due to some negative factors, particularly the stronger baht and the economic slowdown, the company will revise downward its revenue projection, which was targeted to reach Bt5 billion this year. Of the revised total, residential projects will generate 45 per cent, followed by industrial estate projects at 30 per cent and utility fees at 15 per cent, with the rest for factory and leasing facilities.

"We want to broaden our revenue sources instead of relying only on industrial estates. Moreover, the company's businesses should generate income and manage on their own capital to balance revenue sources and reduce risk," Nardone said.

Achara Pongvutitham

The Nation