Prueksa puts blame on banks for poor Q1
Property company Prueksa Real Estate blames banks' tough mortgage-lending criteria for a 9-per-cent year-on-year fall in revenues in the first quarter.
Chief executive and managing director Thongma Vijitpongpun said banks rejected loans to 27 per cent of customers buying its projects off plans. This resulted in missed first-quarter revenue targets. Company sales were Bt1.89 billion for a net profit was Bt292 million in the quarter - down 9 per cent and 11 per cent, respectively, from the same period in last year. Prueksa is talking with the Government Housing Bank and Thai Credit Retail Bank about lending to unsuccessful applicants at commercial institutions. "We have suggested ways customers can prepare their financial statements to pass banks' approval procedures," he said. Prueksa has resold some of its properties, resulting in recorded off-plan sales of Bt2.39 billion in the first quarter that will be booked as revenues in the second. Thongma said purchasing power continued to grow but most home-buyers were delaying making a decision because of financial-security concerns. In the first two months of this year the Government Housing Bank announced total transfers of 5,326 units - down 5 per cent compared with the first two months of last year. Preuksa will launch two city condominiums worth Bt2.5 billion called Ivy Ratchada in Ratchadaphisek Soi 20 and Ivy River on Rat Burana Road. "The condominiums meet demand for a city lifestyle," he said. The company expects to book Bt1.47 billion in presale revenues from the condominiums in the fourth quarter of next year. The company faces competition from three Asian Property Development buildings on Ratchadaphisek Phaholyothin roads and in Soi Aree, worth a total of Bt3 billion. "We believe our Ratchadaphisek project is different from others in the same location and still believe it will meet targets," Thongma said. The company will stick with its plan to start 13 new residential projects over the remainder of the year. This will take the number of projects started in 2007 to 24, with a total value of Bt10.49 billion. "We maintain presale estimates of Bt13 billion, of which Bt10 billion we'll book as revenues by the end of this year in spite of slow growth. "We believe our new projects match customer demands and our prices are competitive," Thongma said.
Somluck Srimalee The Nation
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