Eastern Star budgets up to Bt3 bn for land purchases

Eastern Star Real Estate plans to spend between Bt2 billion and Bt3 billion to buy land for next year and launch two or three condominium projects worth Bt4 billion in the middle of this year.

The funds will come from both internal cash flow and borrowing from commercial banks, managing director Rattanachai Phatinawin said yesterday. About Bt1.2 billion of the capital-expenditure budget will go to buying land for residential projects next year and the rest to constructing infrastructure and residential projects this year.

The investment is expected to boost its presales to Bt3.2 billion and total revenue to Bt2.8 billion this year.

The new projects this year will be located close to mass-transit systems and focus on the middle-to-upper-income market.

The company's presales surged 85 per cent to Bt3.12 billion last year from only Bt1.69 billion in 2011. Its presales came from six residential projects - Nara 9, Star View, The Breeze, Vantage, The Star Estate @ Narathiwas and the Star Estate @ Pattanakarn.