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Published on July 27, 2007

Ivy River is Prueksa Real Estate's biggest undertaking to date. It also marks its spectacular push into the luxury-condominium segment while keeping its starting prices at just Bt50,000 a square metre.

"Ivy River is our largest project with more than 1,270 units, worth more than Bt2.8 billion," said Prueksa's chief business officer Prasert Taedullayasatit.

Two 32-storey towers, each housing 610 units, plus a five-floor waterfront block with 48 units are now being built on its 10-rai plot on the Chao Phya River at Rat Burana.

Prasert says the project has drawn much excitement. On opening day alone the company sold 200 units, worth Bt610 million.

Among the big attractions are the river and the 150-metre river frontage, offering spectacular views. The ambience is quite enchanting, as visitors to the sales office will note. Three mock-up units are available for viewing.

Prueksa is a champion builder, with a sales record that has stunned even its more seasoned rivals.

"In the first quarter we booked Bt2.3 billion in sales. In the second quarter we booked Bt2.9 billion.

"The current quarter will also see a leap in sales. I believe that before the fourth quarter we will surpass our entire Bt7-billion sales of last year."

The Ivy brand is Prasert's brainchild. Expanding from the firm's traditional market for lower-middle-income homes, he has created a division to build upper-middle homes such as Ivy Ratchada and Ivy River.

The first Ivy on Ratchada Soi 20 has 400 units and will bring in Bt800 million when all are sold next year.

"Ivy River is three and a half times the value of our 3.5-rai Ratchada site," he notes.

"Buyers queued for eight hours last weekend to book units at Ivy River," he says. "Even after booking they stayed around to savour the grounds for hours. You don't see that in other projects. It showed our initial instinct about this place was correct."

The site was that of a warehouse. After tearing down the old structure, they were surprise how beautiful the site looked with its natural gentle contours and greenery.

The view across the river can be stunning from higher floors, overlooking the city and the two Casa Riva towers at Supalai.

The smallest studio is 30 square metres and sells for Bt1.49 million. The low-rise waterfront units are larger, with an 80-square-metre, two-bedroom one selling for Bt7 million. The show units are well furnished but don't have bathtubs.

Prasert, 39, formerly with top house-builder Lalin, says he owes his acumen to that company and Siam Cement, where he spent his formative years.

He has worked closely with Prueksa founder and chairman Thongma Vijitpongpun since joining the firm three years ago. "We realised that to grow we needed talent and expertise, which is why we value human resources ," he says.

Prueksa's swift, no-nonsense methods allow it to build and hand over units much quicker than its counterparts. As a result, it realises income faster than other builders, putting it among the least leveraged, most cash-rich players in the market.

"While we appear aggressive in our expansion, we are really risk-averse, and our investments are conservative."

Where it excels is in having its own construction arm, which allows it to trim costs and bolster profit margins.

The third quarter alone will see the launch of 13 new estates. This comes on the back of 13 projects launched in the previous first two quarters.

"The reason we are moving quickly is because we see the opportunities that we are keen to pick up. The window is closing, and we need to do them within the current business cycle as they may not be available in the next one."

"From the start we saw Ivy River as a winner because there is a limited supply of riverfront condominiums, especially ones that offer such splendid views."

"It has a resort-like atmosphere that buyers appreciate."

The firm has set aside a one-rai clubhouse with a swimming pool for residents. The project is expected to take 22 months to build and to be ready by the end of 2009.

Itthi C Tan

The Nation