Harrison set to expand locally and overseas

Harrison is planning to open a branch in Dubai in the second half of the year. This move will help raise its overseas sales from last year's 20 per cent to about 30 per cent of the estimated total revenue of Bt15 billion expected this year.

Harrison is a property brokerage formed through a joint venture between Thai investors - who hold a 51 per cent stake - and Hong Kong investor Alan Lin, who holds a 49 per cent stake.

The company has a registered capital of Bt250 million.

The company has had to temporarily suspend its plans to list on the Stock Exchange of Thailand this year, after delaying this move for the past two years.

The company's chief executive Alan Lin said the company has enough cash to expand its business in the local as well as the overseas

market.

It is because of this cash surplus that the company has not needed to enter the capital markets.

He said the company has three overseas branches in Hong Kong, Singapore and Shanghai.

The company plans to open a fourth branch in Dubai this year and is also studying the Malaysian market as well as other cities in China.

"We will open overseas branches as a part of our plan to expand the earnings from these markets from 20 per cent of our Bt10-billion portfolio last year to 30 per cent of expected sales of Bt15 billion this year," he said.

Lin said the demand for residential projects in Thailand from Dubai-based investors has shown strong growth since last year.

Most of the investors have bought residential projects, especially city condominiums, with a view to invest and generate returns of 7 per cent to 10 per cent a year. He said the sale of such properties is expected to generate a return of 20 per cent to 30 per cent within two years.

Due to the strong interest in Thai properties from the overseas market, the company is expanding the number of overseas branches to drive sales growth and achieve its target for the year.

As of now, the company has managed to sell 20 projects worth nearly Bt20 billion for its property-developer customers. While 15 of these projects are located in Bangkok, the rest are in tourist destinations such as Phuket and Hua Hin.

The company is negotiating with new customers and expects seven to eight projects worth Bt10 billion to become part of its portfolio this year.

Lin said the company expects sales worth Bt15 billion this year, a rise of 50 per cent from Bt10 billion last year.   The company expects to generate profits of Bt225 million this year, a rise of about 70 per cent from its profits of Bt150 million last year.

"We believe we will achieve our targets because demand for residential projects is expected to grow 10 per cent to 15 per cent this year," he said.