Property giant back on track

Real Estate August 19, 2014 01:00

By Somluck Srimalee
The Nation

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Property firm Raimon Land is confident of strong growth this year and next thanks to a backlog worth Bt11.5 billion that will transfer to customers through 2016.

The company also will write off its accumulated loss of Bt351.23 million as of March 31, 2014, chief executive officer Johnson Tan told The Nation yesterday.
Meanwhile, the company plans to acquire new land and develop residential properties next year that will replace the residential projects that will be transferred to customers by 2015.
Currently, the company is developing five residential projects, including three in Bangkok – 185 Rajadamri, The River, and The Lofts Ekkamai – as well as two in Pattaya – Zire Wongamat and  Unixx South Pattaya.
The 185 Rajadamri project is 86 per cent sold out and more than 40 per cent of the units have already been transferred. 
Meanwhile at The River, 93 per cent of the units have been sold and 98 per cent of sold units have been transferred. Sales have also been strong at The Lofts Ekkamai, where 72 per cent of the units have been sold just one year after its launch with an expected completion date of the fourth quarter of 2016.
Eighty-nine per cent of the units at Zire Wongamat in Pattaya have been sold, leaving only 51 units on the market. Unit inspections will start next month, with project completion scheduled for next quarter. The construction of Unixx South Pattaya is also well on track, with the main building works now reaching the 17th floor and almost 60 per cent of units already sold. That project is scheduled for completion in the fourth quarter of 2015.
“Our business policy is to balance our business cash flow, and as a result we will restrict the launch of new projects to when we have already transferred existing projects to customers,” he said.
Since Singapore investor JS Asset Management, owned by Lee Chye Tek Lionel, has held a 24.98-per-cent stake in the company since 2013, the company has reduced its debt-to-equity ratio from 3.56:1 last year to 1.4:1 as of June 30. The company also recorded revenue of Bt3.6 billion, up 12.5 per cent from the same period last year, and net profit of Bt795.71 million, up 114.91 per cent.