SL Estate plans three projects to lift sales

By Somluck Srimalee
The Nation
Published on September 3, 2008

Company expects a 30%revenue hike from new residential developments

SL Estate plans three projects to lift sales

Surin Ongvasith

Property company SL Estate has invested about Bt1.5 billion to launch three residential proj¬ects by next year, managing director Surin Ongvasith said.

"Our aggressive investment is expected to boost our sales and rev¬enue growth up to 30 per cent a year," he said.

He said the first project would comprise a lowrise condominium and villas worth Bt550 million, situ¬ated on Koh Tao, Pran Buri, in Prachuap Khiri Khan province.

The project will have 97 units in a fourstorey condominium and three villas built on 4 rai of land with a 40 metre beachfront.

The project, called Amara, expects about 70 per cent of its sales to come from local buyers and the remaining 30 per cent from foreign investors.

The project has applied for an environmental impact assessment licence and a construction licence. Surin said the company would begin presales in the last quarter of this year after obtaining the two licences.

The next two projects will be residential projects situated in Bangkok. The company is currently scouting for a location close to a masstransit system or a main road and will offer options for an easy commute.

"If we can find one plot of more than 50 rai of land, we might develop only one project in Bangkok. However, if we get two plots of about 10 to 20 rai, we will develop two residential projects worth Bt500 million each," he said.

The company plans to take a bank loan for up to 60 per cent of the project value and invest the remaining amount on its own.

Surin said if the company sticks to its business plan, it might increase its registered capital from Bt150 million to Bt250 million next year.

This will help support its business expansion.

SL Estate was established in 2004 with a registered capital of Bt150 million invested by the Ongvasith family and their friends.

The company's portfolio includes three residential projects on Rama II Road - Rachawadee, Royal Rachawadee and Park Rachawadee.

The Rachawadee project, worth Bt200 million, has been sold out. The other projects, Royal Rachawadee worth Bt500 million and Park Rachawadee - also worth Bt500 million - have sold 80 per cent of the project value so far.

The company expects revenues of Bt350 million this year, or up 16 per cent from last year's Bt300 million.

"Our revenues this year will come from our readytostay homes, Royal Rachawadee and Park Rachawadee," he said.

Next year, the company expects revenues of between Bt500 million and Bt700 million following the launch of its three new residential projects.

If the company grows at the expected average of 30 per cent a year, Surin said it would apply for a listing on Stock Exchange of Thailand within the next five years.

"Although we are a mediumsized property company, we believe that our product quality and project location will help us achieve our growth target and enable our brand to compete with bigger players in the market," he said.

{literal}

{/literal}

Excavator plant to start in 2010
Bangkok Komatsu spent more than Bt1 billion on its second excavator-assembly plant at Bangpakong to serve....
Glow building 3 power plants
Glow Energy will proceed with three new power plant projects, despite the drop in quarterly net profit on the....

{literal} {/literal}

SL Estate plans three projects to lift sales

Company expects a 30%revenue hike from new residential developments

OTHER BUSINESS

Excavator plant to start in 2010

Glow building 3 power plants

Top Stories