SUKHUMVIT Asset Management Co Ltd (SAM) is confident of meeting the target of Bt3.2 billion in non-performing asset (NPA) sales |this year, said Niyot Masavisut, the company’s Senior Executive Vice President for Business Line.
SAM sold Bt1.375 billion worth of NPAs in the first quarter, up 50 per cent year on year from Bt880 million.
SAM has planned to buy a total of Bt10 billion in non-performing loans (NPLs)from commercial banks this year, of which Bt3.7 billion were purchased in the first quarter of the year.
Niyot says the company expects continuous growth this year , thanks to the recovery of the domestic and global economy and the government’s investments in state infrastructure, particularly the Eastern Economic Corridor.
Most of the company’s existing NPAs are located in potential areas, amounting to a total of Bt22 billion, of which 160 are large assets.
The price of a NPA does not go up quickly, unlike new assets, he said.
For example, the price of a NPA condominium is between Bt50,000 to Bt60,000 per square metre compared with Bt200,000 to Bt300,000 per sqm in the market.
This means property developers can still make profit from developing NPA assets.
The company will launch an aggressive campaign to draw customers this year and will allow them to make reservation of the targeted assets online at all times.
This will enable SAM to make quick sales of NPAs on a low cost basis and can serve customers anytime.
He added that SAM will not revise up the NPA sale target this year despite satisfying sales in the first quarter.
He said the entry of new players in the asset management market has led to higher competition and pushed up NPL prices.
It has also benefited financial institutes that sell NPLs.
Saharatna Benyakul, SAM's Executive Vice President for Property Management Group, said that in the first quarter many foreign investors purchased SAM NPAs in the EEC and the trend has continued.
Currently the ratio of SAM NPA in EEC is less than 10 per cent of its large NPA asset.