PROPERTY Perfect Plc has set a joint venture firm with Japan-based Sumitomo Forestry Co Ltd to develop condominium project on Sukhumvit 59, the listed developer’s chief executive officer Chainid Adhyanasakul said in a filing with the Stock Exchange of Thailand yesterday.
Under the deal, Property Perfect and its subsidiary Grande Asset Hotels and Property Plc will hold stakes of 11 per cent stake and 40 per cent, respectively, in the joint venture firm, Grand Star Co Ltd. The remaining 49 per cent will held by Sumitomo Forestry. The joint venture firm has registered capital of Bt300 million.
Sumitomo Forestry was incorporated in Japan in 1948. It has expanded its investments to include the development of residential and office projects, among other developments, in Asia and the US. The company reported revenue of 1.11 trillion yen in its 2017 fiscal year, ending in March,
“Our joint venture firm will start to develop residential projects during the rest of this year that will drive our business growth into the double digits for this year and the next,” he said.
Meanwhile, the company also plans to launch 25 new residential projects worth Bt31.41 billion in the year 2018 that combine the project that develop by a joint venture firm with its Japanese partner. This is target to drive total revenue grow up to 24 per cent in the year 2018 compare with the year 2017, he said.
He added that the company has confidence the property business in the year 2018 will strong growth as the company also plans to launchmore new residential projects with its Japanese partner in the next year.
“We have confidence our property business will show strong growth in the year 2018 compare with this year when we success to join venture with our strategic partner from Japan,” Chainid said.
For its property business this year, the company expects presales will reach the target of Bt15.1 billion and total revenue will achieve Bt19.1 billion by the end of this year.
In the first half of this year, the company reported revenue of Bt6.3 billion and net profit of Bt15.64 million.
Chainid said that in the first half of this year, growth in the property market was lower than its expected, resulting in sales and total revenue coming in less than its estimates.
However, the property market has shown strong signs of a recovery in the second half, prompting the company’s optimism that it will achieve its sales and total revenue targets, he said.
“We have a backlog that will be transferred to our customers in the last quarter of this year, worth over Bt6 billion,” he said, citing the sale of land worth Bt2 billion and the transfer of the Hive Sukhumvit 11, worth Bt2.2 billion.
The company’s hospitality business, including a retail venture that will be developed by its subsidiary V Retail Plc, is negotiating with potential foreign partners to cooperate on the development of the retail business, he said, adding that he expected a deal to be finalised soon.
He said the hotel business, |under Grande Asset Hotels and Property Plc, has continued to show growth.
Chainid expects growth in total revenue of 16 per cent this year, compared with last year, with a target for 22 per cent growth in 2018 over this year.