Thai, Singapore firms tie up for Bt10-bn project

"FCL has a lot of experience in building high-rise projects," said PF chief operating officer Teerachon Manomaiphibul. "The project is expected to be worth over Bt10 billion."

He added that the new project is located near the Thailand Cultural Centre. Both parties will make equal investments in the project.

FCL is a partner of Krungthep Land (KLAND), a subsidiary of PF. The companies had earlier collaborated to build the PANO project on Rama III Road .

Teerachon declined to disclose details about the project.

He said PF would adjust its condominium-project prices upward by 15 per cent in the third quarter of this year because of a 30-per-cent increase in construction costs compared to last year.

PF is launching three new condominium projects in 2008 and 2009 - The Metro Park at Sathorn Phase III, Ratchada, and Sukhumvit - with a combined worth of Bt12 billion.

The company has priced The Metro Park at Sathorn Phase I at Bt30,000 per square metre and increased the price to Bt36,000 per square metre in the second phase. PF forecasts that the selling price would rise to nearly Bt50,000 per square metre for the latest phase, Teerachon said.

Meanwhile, PF will raise the price of low-rise projects, including single detached houses and townhouses, by 2 per cent in June. The company raised the selling price by 5 per cent early this year.

"The company will not increase the selling price anymore after the adjustment in June. We will adjust prices by 7 per cent for low-rise projects this year as construction costs have increased by 10 per cent from last year," he said.

Teerachon said PF would seek approval during an extraordinary general meeting of shareholders on June 20 to issue convertible bonds of US$30 million or the equivalent in baht terms of not over Bt1 billion. The money will be used to build low-rise projects this year.

The company plans to increase the value of low-rise-projects from Bt500 million at the moment to Bt4 billion. PF will accelerate construction in order to benefit from property-tax privileges, which will end in March next year.

Recently, PF's shareholders gave approval for the company to issue debenture stock not exceeding Bt2 billion or equivalent in other currencies in order to purchase new land banks and invest in new projects. The debenture stock will be offered to both foreign and local institutional investors. There are several foreign investors in the US, Singapore and other Asean countries interested in this debenture, said Teerachon.