Sammakorn plans two home projects next year

Real Estate August 02, 2014 01:00

By Somluck Srimalee
The Nation

2,610 Viewed

Targets 54% revenue boost in 2015

Property firm Sammakorn plans to launch two new residential projects worth Bt1.3 billion in total in 2015.
The company predicts the projects will boost it revenue to Bt1.72 billion – up 54 per cent on its revenue target of Bt1.12 billion this year.
Managing director Kittipol Pramote na Ayudhya said the projects would consist of detached homes and townhouses on Tha It and Chaiyapruk roads in Bangkok. 
Kittipol said Sammakorn’s inventory was worth Bt6 billion and would generate income until 2017.
He said Bt500 million generated from its condominium project S.9 would be booked as revenue next year, while Bt1.1 billion would come from detached homes and townhouses and Bt125 million from rental income from retail businesses.
The company has set aside a Bt750-million investment budget for the end of this year and next year, with Bt300 million to be spent on buying land in 2015.
It has spent Bt300 million buying land this year for the development of homes next year. 
Kittipol said Bt350 million would be spent on developing a community mall on 13 rai (2 hectares) in Khon Kaen. The project is close to Khon Kaen University. Work on the mall, an equal joint venture between Sammakorn and the Piman Group, is slated to commence in the final quarter of this year. 
“We had to delay the launch of two projects from this year to next year when we faced the country’s political uncertainty early this year, but now we see the country is politically stable under the National Council for Peace and Order,” Kittipol said.
He added that although the company had confidence in the country’s political climate now, it could not launch the projects in the second half of the year because of the time frame it would take to bring them to fruition.
With consumer confidence returning, he said the company was targeting an average of Bt100 million a month in residential project sales, which would boost its revenue to Bt1.12 billion by the end of the year – after an earlier target of Bt1.3 billion.
However, he said the figure would still be a 6-per-cent improvement on last year’s Bt1.05 billion.
“We revised down our revenue target this year although demand in the market is recovering in the second half, but commercial banks have continued to restrict approving mortgages after household debt rising,” he said.
The loan-rejection rate for potential Sammakorn customers is 18 per cent, promoting the lower revenue forecasst.
Sammakorn reported revenue of Bt246 million and net profit of Bt13.72 million in the first quarter. It recorded Bt400 million in presales in the first half of the year.