Eastern Star set to launch two condo projects

Real Estate April 23, 2014 00:00

By Somluck Srimalee
The Nation

2,831 Viewed

Eastern Star Real Estate plans to launch two new condominium projects worth Bt7 billion this year to boost presales to Bt1.8 billion this year, the company's CEO Ratanachai Phatinavin said.

The company also targets to clear accumulated loss of Bt108 million by the end of this year, he said.
“When we clear our accumulated loss, we may be able to pay dividend to our investors the next time,” he said. 
He added that the company has delayed its launch of new residential projects in the first quarter of this year because of the political problem that is directly affecting homebuyers’ confidence. 
“Although the country’s politics is still in turmoil currently, we believe the problem will be resolved soon. We have to carry on with our business. We have decided to launch our first condominium project, Amber by Eastern Star, worth Bt2 billion on Tiwanond Road this month,” he said.
He added that the company also plans to launch the next new condominium project worth Bt5 billion in the second half of this year. 
Meanwhile, the company has set aside an investment budget of Bt3 billion to buy undeveloped land to develop residential projects next year to boost its total presales and revenue growth in the long term.
At present, the company has total backlog of Bt3.7 billion with units already sold and awaiting transfer to buyers this year and next year. Of the total, Bt1.65 billion will be booked as total revenue this year, and the rest, worth Bt2.05 billion, will be booked as revenue in 2015.
The company recorded total revenue of Bt1.54 billion and net profit of Bt158 million in 2013.
Ratanachai said the company believed that its total presales and total revenue would achieve the target because up to 50 per cent of its customers buy residences in cash, and the rest apply for mortgages from banks. Meanwhile, only five per cent of its customers failed to get mortgages from the banks because of they did not meet the banks’ standards.