Sansiri to set aside Bt27 bn next year for 21 home projects

Real Estate December 25, 2015 01:00

By SOMLUCK SRIMALEE
THE NATION

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SANSIRI PLC will allocate Bt27 billion next year



Half of its capital expenditure budget will come from internal cashflow and half from borrowing from banks and issuing debentures, Wanchak Buranasiri, chief operating officer, said yesterday.
The company is also studying overseas opportunities with focus on buying residences in the UK and New York worth not over Bt1 billion to renovate for sale to Thai buyers who want a home abroad for their family.
This will follow up on the company’s success in selling its residential projects in the UK over the past two years.
The company targets total presales growth of up to 40 per cent next year from Bt30 billion this year, while its total revenue will remain nearly the same as the Bt37 billion expected this year.
About Bt10.4 billion revenue next year will come from its Bt27.11 billion backlog, which will be booked as revenue from 2016-18.
In the first nine months of this year, the company earned Bt2.5 billion on revenue of Bt28.08 billion.
It is aiming to boost net profit margin to 15 per cent in 2018 from 9-10 per cent this year by cutting its sales and administration expenses.
It will develop 70 per cent of the 21 new projects by itself, while 30 per cent will be developed by its joint venture with BTS Group Holdings Plc. Three of the new projects will be located in the popular provinces of Chiang Mai, Udon Thani and Phuket.
The number of launches next year is higher than this year’s 11 projects worth Bt22 billion – which was lower than the 17 projects worth Bt30 billion that it had planned – because the company has confidence that the property market will grow 3-5 per cent. 
The optimism is due to the government’s investment to develop the country’s infrastructure such as mass transit, double railways, motorways and expressways. This will spur demand for residences.
The company suspended six residential projects worth Bt8 billion after it saw demand dimming in the second half.
They will be introduced to the market next year, including a luxury condominium project on Wireless Road, he added.