Eastern star chief sets NEW goalS

It is setting aside Bt500 million to buy land in the central business area to build condominium projects.

Half the amount should come from its cash flow and the rest from bank loans.

It will also sell nearly 1,000 rai of land worth about Bt1 billion in Rayong to finance the expansion, said managing director Ratanachai Phatinavin, who was appointed to the post in March.

Its business plan should help the firm earn more revenue and write off accumulated losses of Bt470.84 million.

Eastern Star posted revenues of Bt259.03 million with a net profit Bt33.67 million in the first quarter.

But its accumulated losses at the end of March stood at Bt470.845 million.

For new investments, Bt500 million will buy land in the inner city near mass transit lines,planning to build condominiums worth Bt2 billion-Bt3 billion in the second half.

Ratanachai said the firm held off building more housing projects in the past two years because it wanted to evaluate the market and reorganise its business first.

"We are moving from Rayong to Bangkok because housing demand is stronger here," he said.

"To boost sales and write off accumulated losses, we have to focus on Bangkok for our expansion."

Eastern Star expects to gain Bt1.05 billion this year from six existing projects, including the Star Estate projects in Bangkok.

Its two subsidiaries, Eastern Star Resort and Sea Star Properties, own and manage the Eastern Star Country Club and Resort as well as Sea Star Executive Apartment & House in Rayong.