Lalin to spend Bt1 bn on land for 10 projects

Lalin Property has set aside Bt1 billion to buy land for the development of 10 residential projects worth a total of Bt4 billion this year.

The development programme will drive the listed company's 2013 presales to Bt2.6 billion, up 20 per cent from last year, and overall revenue to Bt2.25 billion, up 15 per cent, chief executive officer Chaiyan Chakarakul told a news conference yesterday.

Lalin posted revenue of Bt1.09 billion and net profit of Bt157.14 million for the first nine months of last year.

The company's budget for land purchases will come from both cash flow and bank borrowings.

"We have room enough to take out project loans from the banks, as we have a debt-to-equity ratio lower than 1:1," he said. The ratio currently stands at 0.46:1.

The 10 residential projects planned for this year comprise three detached-housing and three condominium projects in Bangkok, and four mixed detached-housing and condo projects in the provinces. Chaiyan cited Chon Buri, Khon Kaen, Udon Thani and Rayong as the provincial locations.

"We believe the property market has shown strong recovery after facing the flooding crisis in 2011, while the country's economy has strong growth that will boost purchasing power for buying homes both in Bangkok and in the provinces this year," he said.

The CEO said the company had begun to expand its investment in the provinces last year by launching two condominium projects in Chon Buri province. Both have received positive feedback from customers.

This has persuaded the company to continue to expand upcountry this year, focusing on the East and Northeast.

In the Eastern region - Chon Buri, Pattaya and Rayong in particular - there is more residential demand from people who work in industrial estates, he said.

Meanwhile, the company's focus in northeastern provinces such as Khon Kaen, Nakhon Ratchasima and Udon Thani is related to demand from foreign investors expanding their regional investment as the Asean Economic Community's implementation in 2015 draws ever closer.

Such investors aim to use Thailand as a hub for investment within the AEC, especially in Laos, Chaiyan added.