NPAs offer value for investors, says KTB | Bangkok Post: business

Non-performing assets (NPAs), especially properties near borders and logistics development areas, are likely to be attractive for investors this year due to their low prices, says Suchart Dejittirut, executive vice-president of Krungthai Bank (KTB).

Mr Suchart, also director for credit restructuring and asset management, suggested investors tap the opportunity before NPA prices rise in line with demand.

"Investment in NPAs is becoming popular given it is about 10% cheaper than investing in new property," he said.

Most investors are interested in properties in business districts or near infrastructure development areas where the economic value is set to rise.

Mr Suchart said these properties save investment costs for developers compared with greenfield projects.

From 2009-12, KTB sold NPAs worth 30 billion baht or an average of 10 billion per year, with the average price of assets increasing significantly every year.

"When the Asean Economic Community takes place in 2016, property near borders and economic zones will be in the spotlight," Mr Suchart said.

The North-South Economic Corridor, East-West Economic Corridor and the high-speed rail project are also expected to increase demand for NPAs, he said.

KTB has 5,000 NPAs across the country worth about 23 billion baht.

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