Ananda Development Plc’s chief executive, Chanond Ruangkritya, presents the developer’s 2019 business plan yesterday.
Ananda Development Plc’s chief executive, Chanond Ruangkritya, presents the developer’s 2019 business plan yesterday.

Ananda eyes Bt8 bn in land deals

Corporate February 07, 2019 01:00


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LISTED PROPERTY firm Ananda Development Plc plans to spend up to Bt8 billion to buy land for the development of 10 residential projects worth Bt38 billion this year, chief executive officer Chanond Ruangkritya said yesterday.

“Our investment budget will come from both our cash flow, which we will get from transferring our residential projects to our customers, and [from issuing debentures] worth between Bt4 billion and Bt6 billion this year,” Chanond said at a press conference.

For the debentures, the company expects to keep its preferred measure of leverage – net interest-bearing debt to equity - below 1:1 |for the year, exactly at management’s long-term target, Chanond added.

Seven of the 10 residential projects the company expects to launch this year, will be condominiums developed by a joint venture firm along with Japanese partner Mitsui Fudosan. Ananda will also develop a condominium project on its own, and the remaining two projects will be houses.

The company expects total presales for the year to reach Bt36 billion in 2019, up 14.28 per cent compared to its total presales of Bt31.5 billion in 2018, Chanond said.

He said the company also sees the opportunity to expand its business, through investments that would generate recurring income over the long term. It has thus started taking on apartment projects along with global partners, including The Ascot Limited, which is the world’s No 1 luxury serviced residences operator, “with many awards guaranteed”, Chanond said.

 The company is now developing five serviced apartment projects – Somerset Rama 9, Ascott Embassy Sathorn, Ascott Thonglor, LYF Sukhumvit 8 and the latest projects in the middle of the project at Central Pattaya Beach.

The company in 2018 transferred property worth Bt33 billion, up 120 per cent from 2017. Of that, up to Bt6.3 billion were transferred to foreign customers, up 300 per cent from 2017.

Meanwhile, in the first nine months of 2018, the company recorded total revenues of Bt9.3 billion and Bt1.7 billion in net profit.

The company now holds a total backlog worth Bt41 billion, which it is waiting to transfer to its customers between now and the year 2021.

“We have confidence the property market in this year will still grow, following the country’s economic growth. As a result we have continued to expand our investment, even though the country will have an election and the interest rate is rising,” Chanond said.