MBK Real Estate Co Ltd, a property development arm of MBK Group, will launch residential projects worth more than Bt10 billion from 2017-20 under a plan to boost the company’s revenue to Bt4 billion in 2020, managing director Hatchapong Phokai said.
“We plan to launch residential projects worth more than Bt2.5 billion a year from this year till 2020 in Bangkok and suburban areas and in Phuket,” Hatchapong said in an interview yesterday. “We are also looking into the possibility of launching residential projects in Chiang Mai, Chon Buri, Udon Thani and Khon Kaen.
“This is part of a goal to drive our total revenue growth to an average of 20 per cent a year from 2018 to 2020.”
This year, the company has developed a Bt2 billion luxury villa project, the Riverdale Residences, with sales starting in the second half.
The company also plans to launch a luxury single detached house for more than Bt50 million on Rama 9 Road - near the Nine Center Rama 9 worth Bt500 million – this year.
The sale will help drive the company’s total revenue this year to Bt1.2 billion, after it reported Bt500 million in revenue for the first half. This is lower than the Bt1.5 billion in revenue recorded for last year, when net profit was Bt340 million.
“Our total revenue and net profit this year will lower than what we achieved last year when the condominium project Quinn on Ratchada 17 was transferred to our customers,” Hatchapong said.
“We were able to transfer to our customers more than 90 per cent of the value of our total projects last year, with the rest to be transferred this year.
“However, with the launch of two new projects before the end of this year, that will generate income for company in 2018 that will be higher than that for this year.”
Hatchapong said the company has set aside a budget averaging Bt1 billion a year until 2020 that will be spent on land to develop residential projects. With these projects, the company will achieve its 2020 goal of Bt4 billion in revenue, he added.
The company will focus on developing residential sites at locations close to proposed new hotel and retail projects of MBK Group. Home-buyers would benefit from the convenience of these locations, with the retail and luxury services on offer from the parent company, he says.
“The property market now is marked by high levels of competition,” Hatchapong said. “When we launch new projects that are close to the commercial projects of the parent company, this will meet help buyers’ demands.
“One of our business strengths is that our parent company has services to offer our customers, covering demand for retail, hotel and office needs.”
Meanwhile, MBK Plc has MBK Guarantee Co Ltd, a loan provider for customers with assets to insure. These services can help customers who cannot get mortgage loans from the commercial banks, Hatchapong said.
The company’s customers have gained loans from MBK Guarantee worth up to Bt200 million. This linkage supports the company’s residential business at a time when commercial banks are becoming more restrictive on mortgages, he said.
“Our business strategy is to promote collaboration between all our business units and that helps us to do business easier than our competitors in the market, although our residential business is still smaller than those of the main property developers,” Hatchapong said.