July 21, 2014 00:00 By SOMLUCK SRIMALEE
BURITARA DEVELOPMENT CO has set aside an investment budget of Bt2 billion to develop condominium projects in tourist destinations in Thailand, Myanmar and Laos this year and next.
Half of that will be spent this year to develop three projects in Bang Saen and Pattaya, and the rest in 2015 to develop condo projects in Chiang Mai, Phuket, Myanmar and Laos, chief executive officer Tite Chinsomboon said.
Up to 70 per cent of the investment budget is from the company’s cash flow and new capital, which will increase its registered capital from Bt5 million to Bt105 million in the second half of the year. The rest will be borrowed from commercial banks.
The company also plans to apply to list on the Market for Alternative Investment next year, Tite said.
Senior vice president Wichai Chula-Olarnkun said Buritara Development was negotiating with a Japanese property firm for development of a condominium project in Yangon.
The joint venture plans to build a condo-resort in Myanmar’s largest city worth between Bt200 million and Bt300 million.
The idea is to develop some condominium units for sale while others are rented out as hotel units, guaranteeing annual return for its customers of 3-5 per cent, he said.
The deal in Myanmar will be finalised by the middle of next year, he said. In Laos, Buritara aims to invest between Bt100 million and Bt200 million, focusing on the country’s historic city of Luang Prabang, Tite said.
In Thailand, the company plans to run condo resorts in Chiang Mai and Phuket by taking over existing properties developed by other firms that need a partner to manage them.
The investment budget for this business is about Bt500 million, Wichai said.
“Our business concept is to develop condo-resorts and villa-resorts in tourist destinations rather than developing condominiums or detached houses in Bangkok because we see strong demand from those wanting to buy condos or other residences for investment rather than accommodation,” Tite said.
At present, the company has three resorts under the Buritara brand, in Kanchanaburi province, Jomtien beach in Pattaya, and Koh Phangan in Surat Thani province. They have 146 rooms in total and an occupancy rate of about 50 per cent.
They generated revenue of Bt160 million last year.
The company is developing three resort projects this year. Buritara Chateau Resort Condo Bangsaen, worth Bt400 million, has already sold about 40 per cent of its units, with transfer to customers to begin next quarter. It will launch the other two projects, both under the villa concept and each worth Bt300 million, in the current second half. They are Buritara Town Resort Jomtien and Buritara Royal Grand Hill Villa Jomtien.
The company targets revenue of Bt550 million this year, Bt250 million from hotel and resort business, and the rest from condominium sales, from the transfers of Buritara Chateau Resort Condo Bangsaen, Wichai said.
The firm targets revenue of Bt1.7 billion next year, Bt300 million from hotel and resort business and the rest from residential sales, he added.
Buritara Development Co is wholly owned by the Chinsomboon family, which has long experience in the hotel business. The company was established last year with registered capital of Bt5 million. The family also holds 100 per cent of the hotel-management firm EZY Thai Group Co, with registered capital of Bt100 million. EZY Thai Group was established in 2003.