THE NEST Property Co Ltd, a property arm of the of the Mahagitsiri family’s PM Group – renowned for coffee production, among diverse businesses – plans to spend more than Bt10 billion to develop condominiums and hotels in Bangkok from this year to 2021.
“We plan to launch an average of two new condominium projects worth up to Bt2 billion from this year to 2021, for a combined Bt8 billion, and we have also set aside an investment budget of Bt2 billion to develop two hotels on Ploenchit Road and Na Na Road in 2020 and 2021,” the company’s chief executive officer Ausana Mahagitsiri said at a press conference yesterday.
Ausana said that this year the company planned to launch two condominium projects worth a combined Bt3.6 billion. The first, the Nest Sukhumvit 64, which is worth Bt1.6 billion, has already been launched with up to 80 per cent of the total project value sold. The remaining units are expected to be sold by the end of this year.
The Next Sukhumvit 71, worth Bt2 billion, will be launched on the market in August.
The company expects the presales from both projects will reach up to Bt2.5 billion by the end of this year. The developer also forecasts its total revenue will hit Bt2 billion by the end of 2018, flowing from its existing condominium projects on Sukhumvit 22 and Ploenchit Road. The projects have been sold out and the units will be transferred to customers throughout the rest of this year, Ausana said.
For the hotel projects on Ploenchit Road and Na Na Road, the properties will be managed by the Rosewood hotel chain under the Penta brand, Work on the 150-room Pentahotel in Ploenchit Road will start in 2020 with a development cost of about Bt800 million; it is expected to be completed in 2022.
For the 250-room Pentahotel in Na Na Road, worth about Bt1.2 billion, development work will start in 2022 and completion is projected for 2024.
Both hotels would generate recurring income to the company of about 10 per cent when they are completed, Ausana said.
The source of funds for developing the condominiums and the hotels will come from the company’s initial cash flow as well as from bank loans, she said,
She said that the company has continued to expand its investments in the residential and hotel segments in light of the strong demand in the market - especially in the central business districts of Bangkok. The demand comes from both the domestic and overseas markets. Up to 70 per cent of its target customers will be from the domestic market, with the remainder from overseas markets such as mainland China, Hong Kong and Singapore.
Up to 50 per cent of the target customers are those who are buying to take up occupancy, while the rest are buying for investment and will put their condominiums out for rent, Ausana said.