Thai developer ‘expanding aggressively'

A leading Thai developer is to expand aggressively in 2010 and looking to invest in China, Indonesia and the Maldives...

In a sign that developers are looking towards markets in Asia as holding the best prospects for the coming year, Preuksa Real Estate, revealed it is in negotiations to build its portfolio outside Thailand and to diversify into new markets.

Chief Operating Officer Prasert Taedullayasatit said the company is in negotiations to set up a joint venture with the Maldives government to construct a low-rise residential project next year.

It is exploring investment opportunities in China and Indonesia as both countries have large populations and demand for residential real estate is strong.

It already owns two residential projects in India and is working on an 85% owned project in Vietnam.

Taedullayasatit said the company will realize around one billion baht next year from the projects in India and Vietnam.

Revenue from overseas investments is expected to contribute 40% of the company's total revenue target of 100 billion baht in 2017, he added.
 
While developers in the Middle East struggle with challenging finances, the Thai company has set an industry record in 2009, chalking up presales of 23 billion baht, beating the 22 billion baht achieved in 2005 by Land & Houses, Thailand's largest property developer by revenue.
 
Preuksa's presales in the fourth quarter of the year are poised to hit eight billion baht, beating its previous quarterly high of 5.99 billion baht in the third quarter.

Taedullayasatit confirmed that the company's revenue this year will exceed its target, while net profit will rise from last year's 2.73 billion baht.

 ‘The key to success is our cost competitive edge and speed of construction.

Our building cycle for townhouses and single, detached houses takes around 60 days only, but our suppliers give us 75 days in credit.

It means we have money from customers' reservation before we pay to the suppliers,' he said.
 
Townhouses and single, detached houses account for 75% of the company's revenue, while condominiums make up the rest.

Preuksa is expected to enjoy around 25 to 30% growth in both presales and revenue next year, well above the industry's growth of 5% to 10%.

Source: www.propertywire.com