• 
• 

Published on February 13, 2008

Real-estate developer Property Perfect will launch a new Bt3-billion property fund in about two years as a means of creating cash flow.

The plan follows a current deal in which Property Perfect has sold 64 single-detached houses worth Bt520 million to the Property Perfect Fund, which is managed by One Asset Management and open for subscription until the end of next week.

The Bt520-million fund is underwritten by six securities firms: One Asset Management, Bualuang Securities, Kim Eng Securities (Thailand), KGI Securities (Thailand), Phatra Securities and Thanachart Securities. Property Perfect, which will itself invest Bt50 million in the fund, is guaranteeing a return on investment of at least 7.5 per cent a year within five years.

The fund will buy 17 single-detached houses at Property Perfect's Perfect Masterpiece project at Ekamai-Ram-Indra area in Bangkok's Lat Phrao district and another 47 at the company's Perfect Place project on Ramkhamhaeng Road in Min Buri district.

"We had to launch a property fund, because it would clear our housing stock and generate Bt520 million in cash for our business in this year's first quarter. That's enough to develop new residential projects this year and buy new land on which to develop residential projects next year," Property Perfect managing director Chainid Ngow-sirimanee said.

Plans for the Bt3-billion property fund relate to Property Perfect's Centrepoint Shopping Mall project, which will be built on 10 rai of land on Ratchadaphisek Road. Construction of the large-scale retail and office building will begin in the second half of the year and is expected to be completed in 2010.

The project is being developed by Property Perfect's joint venture with Singaporean-based Timberline Investment. The Thai company holds a majority stake of 60 per cent in the venture.

"We must develop the retail and office building to generate rental income for our business, which will balance the risks of property development in times of economic uncertainty," Chainid said.

Present plans involve selling the retail and office complex to a new property fund, in order to provide the developers with a rapid cash flow.

Meanwhile, Property Perfect is planning to launch six new residential projects this year with a market value of about Bt16 billion. It is hoping for presales amounting to about Bt9 billion, which would help generate revenue of at least Bt8 billion this year.

Property Perfect recorded total revenue of Bt4.2 billion for a net profit Bt225.08 million in the first nine months of last year. It expects full-year revenue of nearly Bt6 billion.

Chainid said two of the company's six new residential projects would be condominiums and the remaining four single-detached-house projects.

Somluck Srimalee

The Nation