Mana Patanakarn Co, a property development subsidiary of SET-listed contractor Nawarat Patanakarn Plc, plans to launch two new residential projects worth a combined 1.6 billion baht in 2017.
The company also wants to develop an office tower and a community mall over the next two years.
Pasan Swasdiburi, president of Mana Patanakarn, said it sees a business opportunity in recurring income properties. The company owns a 20-rai land bank on Bang Na-Trat KM 4 Road it believes will become an attractive location in the future.
"The Bang Na area has potential as it leads to Suvarnabhumi airport and is close to a skytrain station," he said. "We will develop an office tower with 11 storeys for both our own use and rental."
The company is also interested in the community mall business, planning to start with a small-scale site near its residential projects to support its housing customers.
In 2017, the developer plans to launch Baranee Residence single-house project worth 850 million baht on a 34.5-rai plot in Rangsit-Khlong 3, comprising 140 units priced from 5.7 million baht.
The other residential project is Aspen Condo phase B worth 750 million baht, which will be located on a 3.5-rai site on Lasalle Road. The project is set to launch on Feb 4, comprising two eight-storey buildings with a total of 398 units sized from 23.64 square metres and priced from 1.39 million baht.
"The property market this year will recover from a sluggish 2016 with many developers planning to launch new projects," said Mr Pasan. "The country's overall situation is in good shape as internal factors are improving to become more stable."
The company aims to have 800 million baht in presales by the end of the year, an increase of 75% from 455 million last year. The revenue projection is for 600 million baht, up from 100 million in 2016.
Mana Patanakarn's revenue this year will account for 7-8% of Nawarat Patanakarn's total, up from only 1.5% last year. The developer aims to boost its revenue contribution to 10% of the contractor's total revenue next year, he said.
The company plans to spend 500-600 million baht a year to buy land plots for residential development, expecting to launch at least two new projects a year.
Founded in 2013, Mana Patanakarn raised registered capital from 600 million baht to 800 million in 2015 to support its business expansion.
It also holds a 40% stake in a residential development joint venture with SET-listed Charn Issara Development Plc, called C.I.N. Estate Co. C.I.N. plans to launch a luxury single-house project on a 30-rai site on Bang Na-Trat Road this year.
Mr Pasan, also Nawarat Patanakarn's senior vice-president of new business & strategic planning, said the contractor projects new construction jobs worth 10 billion baht this year from the 180 billion baht worth of projects in which it bid. Of the total, more than 90% will be from the government sector.
The contractor has a sales backlog of 16 billion baht.