NAKHON SI THAMMARAT - Backed by a thriving livestock business, property developer Apasiri Group plans to launch new housing projects, hotels and resorts worth more than 3 billion baht in southern provinces, Bangkok and beach and hillside destinations.
Apasiri Group director Krit Narmkerd in front of The Vintage project worth 600 million baht. It comprises 68 shophouses on a 16-rai site in Muang district of Nakhon Si Thammarat.
All 11 projects will be developed on land that the group has collected over many years, said Apasiri Group director Krit Narmkerd.
Most projects will be financed by the company’s parent firm P.S. Contract Farming Co, formerly Paktai Group, one of the three largest livestock companies in the South along with CP and Betagro.
“We aim to have 50-50 revenue from both businesses in the next five years,” said Mr Krit, the 26-year-old eldest son of Apa, the major shareholder of P.S. Contract Farming.
Revenue from livestock business, which has operated since 1982, accounts for 80% of P.S. Contract Farming's revenue, while property development, which it started in 2006, represents 20%.
P.S. Contract Farming this year expects to record 900 million baht in sales and 875 million in revenue from its property business, up from 500 million and 400 million respectively in 2013.
Annual turnover from livestock business is around 5 billion baht with average growth of 3-4%.
Of the 11 new property projects, only three will be located in Nakhon Si Thammarat due to limited demand in the residential market in the province, Mr Krit said.
“Despite limited volume, real demand in the Nakhon Si Thammarat housing market has expanded at a steady pace, driven by the arrival of large department stores, but speculation has dropped since the country’s economy turned gloomy,” he said.
Shophouses were the most popular units for speculators. About 1,000 shophouses have been developed annually in the province over the last five years, accounting for 60% of the market.
However, most speculators were reluctant to dump a shophouse because their prices have been rising by nearly 50% a year.
Mr Krit said the new projects in other provinces will include two shophouse projects in Muang Trang and Takua Pa in Phangnga. Each will be located on a three-rai site with 25 units worth combined 250 million baht.
In Krabi, there will be single houses, townhouses, condos and shophouses worth a combined 800 million baht located on a 90-rai site.
The group will develop two projects in Pran Buri district of Prachuap Khiri Khan. One will comprise townhouses and six-storey condo buildings on a nine-rai beachfront site. Another will be a villa project on a 22-rai plot.
Up north it will develop a resort in Pai town in Mae Hong Son, he said.
In Bangkok, it will launch the Viia7 condo project on a seven-rai site with 300 units worth 500 million baht on Bang Na-Trat Road KM 26. Due to the location near Abac's Bang Na campus, it will offer a 7% return for the first five years.
Apasiri Group has nine projects with remaining units on hand worth a combined 1.8 billion baht. They comprise four projects each in Nakhon Si Thammarat and Krabi and one in Chumphon.
To support development in the middle of a labour shortage, the group will spend 150 million baht to build a precast factory.
Next year it will build The Vintage Hotel with 300 rooms worth 900 million baht in Muang district of Nakhon Si Thammarat as the province lacks a large hotel with spacious function rooms.
“Our property business expansion from development worth 1 billion baht a year to 3 billion baht will be supported by our new investment of 1.5 billion in a chicken incubator and slaughterhouse in Hua Hin that will start operations in mid-year,” said Mr Krit.