April 29, 2014 00:00
By Somluck Srimalee
Upcountry holdings to be sold in bid to cut debt, raise cash; developer focuses on metro Bangkok
Golden Land Property Development, one of the firms owned by the family of beverage tycoon Charoen Sirivadhanabhakdi, plans to sell Bt2.4 billion worth of assets, including its upcountry land bank, to reduce its debt and to raise cash to develop residential projects in Greater Bangkok over the next few years.
Chief executive officer Thanapol Sirithanachai told a news conference yesterday that the company’s board had approved the sale this year of non-core assets worth Bt2.4 billion, largely consisting of undeveloped land in the provinces.
The company will spend the proceeds to pay back some of its debt and to buy land for development from 2015-2017. Some of the cash will be used to develop its Bt5-billion FYI Center office and hotel project on Rama IV Road in Bangkok.
“Of the total Bt2.4 billion, we will complete the sale of assets worth Bt1.15 billion this month. The whole deal will be completed within this quarter,” he said.
A total of 31 rai (5 hectares) on Ramkhamhaeng Road worth Bt980 million will be sold to Sirisub Patthana Co, a property firm owned by Golden Land’s major shareholder Charoen Sirivadhanabhakdi, along with 154 rai in Chiang Rai worth Bt175 million.
Negotiations are in progress for the sale of 118 rai in Muang district of Krabi province worth about Bt250 million, 213 rai in Thap Sakae district of Prachuap Khiri Khan worth Bt150 million, and 87 rai in Ban Chang district of Rayong province. These deals will be completed this year, Thanapol said.
He noted that the company’s debt burden had reached Bt6.69 billion as of the end of last year. Besides reducing this, the asset sale supports its business focus on developing residential and commercial projects in metropolitan Bangkok.
This year, the company has set aside an investment budget of Bt3 billion. Of that, Bt2 billion will be used to buy land for residential developments between 2015 and 2017, and the rest for construction of 10 new townhouse and detached-housing projects worth Bt9 billion being launched this year.
Three of this year’s 10 projects were launched in the first quarter, and the remaining seven will launch in the second half, Thanapol said.
At present, Charoen holds 58.98 per cent of Golden Land Property Development. It is listed on the Stock Exchange of Thailand, along with another of his property firms, Univentures.
Golden Land Property Development recorded revenue of Bt1.59 billion and a net loss of Bt430.43 million last year.