Major development unveils suite dreams

With an eye on generating more rental income over the next five years, Major Development is shaping up plans to build hotels this year. The move will help create a stable source of income for the company, managing director Suriya Poolvoralaks said.

Major Development is developing a boutique hotel at Hua Hin. It is also scanning land in Pattaya for launching luxury-hotel projects by 2010.

The company is also developing nine residential projects worth Bt20 billion in Bangkok, Pattaya and Hua Hin. It has six luxury-condominium projects in Bangkok - Watermark Chao Phya River, Manhattan Chidlom, Aguston Sukhumvit 22, Wind Sukhumvit, Wind Ratchayothin and Royce Private Residences.

Royce Private Residences is being developed by MJAI Development, which is a joint venture between Major Development and AIG Asian Real Estate Partner II.

The next two projects are Mykonos Hua Hin and Marrakesh Hua Hin Residences. The last one, Reflection Jomtien Beach, is in Pattaya. The three projects have been launched this year and are worth Bt3 billion each.

Major Development plans to build a hotel close to the Marrakesh Hua Hin Residences, Suriya said.

Feasibility surveys are also being carried out on 10 rai of land close to Reflection Jomtien Beach in Pattaya for developing hotels.

The hotel and residential projects illustrate the company's thrust on the luxury market, Suriya said. The company is focusing on high-end and high-rise condominium projects, for which it sees a strong demand in the market.

Major Development plans to launch three to four condominium projects a year. New projects may be launched in the second half if the uncertainty over the country's political future clears up, Suriya said.

"We will have to see the country's economic and political climate in the second half. If things clear up, we may launch new projects," he said. "As far as possible, we will invest in the projects ourselves. But we are open to joint ventures."

In April, the company's shareholders approved issuing of debentures or convertible debentures worth Bt1.5 billion that will help the company raise funds from the market if the need arises, he said.

Major Development posted a revenue of Bt614.52 million and net profit of Bt117.27 million in the first quarter, up 65 per cent and 149 per cent from the same period last year.