SET-listed developer Ananda Development Plc plans to launch 17 new projects worth a combined 41.8 billion baht, expecting 30.4 billion baht in presales with growth of 21% this year.
Chief executive Chanond Ruangkritya said the total value of the new projects would be double that of 2015. A key driver would be joint venture projects with Japanese developer Mitsui Fudosan.
Among the 17 new sites, nine will be joint venture condo projects worth a combined 33 billion baht that will account for 79% of total project values. Last year five of the eight projects it launched were joint venture sites worth a combined 17 billion baht, representing 84% of the total.
Last year Ananda recorded a net profit of 1.5 billion baht on revenue of 12.2 billion baht, up 24% and 11% respectively from 2015. Net profit improved to 12% from 11% of revenue.
Of the total revenue, 9.78 billion baht was from residential development for sales, a 2% gain, and 2.45 billion from other, up 72%, which included 1.2 billion from management fees from joint venture condo projects and 1.2 billion from construction subsidiary Helix Co. Last year it recorded 25.2 billion baht in presales, down 4% from 2015.
The company plans to spend 13.5 billion baht this year to buy new plots for future project development, up from 7.25 billion last year.
It has 18 plots of land in Bangkok, both close to mass transit stations and up to 8.6 kilometres away from such stations. Development could cover both low-rise and condos in 2017-18, said Mr Chanond.
Ananda expects to have recurring income from service apartment businesses from 2020 onwards. This year it will spend 1.35 billion baht to develop a four-star serviced apartment with 450 rooms on a leasehold 3.42-rai plot on Ratchadaphisek Road near the Rama IX subway station.
"Serviced apartments will generate regular income in a volatile market," he said. "We will seek an investor for a joint ventures to develop one or two projects a year."
ANAN shares closed yesterday on the SET at 5.05 baht, down 10 satang, in trade worth 66.4 million baht.