Golden Land plans B12.3bn starts this year

Golden Land plans B12.3bn starts this year

Doubling of revenue seen after KLand buy

SET-listed Golden Land Property Development Plc plans to launch 13 new residential projects worth a combined 12.3 billion baht in 2015.

The company expects revenue to more than double after its acquisition of property developer Krungthep Land (KLand) late last year.

Golden Land expects 8.23 billion baht in consolidated revenue this year, up from about 3.82 billion in 2014, said president Thanapol Sirithanachai.

Of the total, 7.28 billion baht will come from housing development, boosted by 3 billion baht in revenue from KLand.

KLand has 12 housing projects with units remaining for sale, which include complete houses worth 3.4 billion baht ready to be revenue this year.

The new subsidiary also has plots spanning 700 rai for new project development, with an estimated sales value of 12 billion baht once developed.

"Restructuring KLand after the acquisition will take a few months to complete," Mr Thanapol said yesterday. "We will continue using KLand's housing brands for the high-end segment but promote them under Golden Land's umbrella."

All of Golden Land's new projects this year will be low-rise developments, with the focus on five single-house projects and eight townhouse sites.

Meanwhile, condos will be developed by Grand Unity Development Co, one of the subsidiaries of Univentures Plc, which is Golden Land's parent company and owned by the Sirivadhanabhakdi family.

Golden Land expects to record 3.82 billion baht in consolidated revenue for 2014, up from 1.59 billion baht in 2013, and turn a profit after four years of losses.

Some 2.3 billion baht will be from housing sales and 1.5 billion from office building rentals.

"We aim to be one of the top five property companies in the country by 2018 in terms of integrated companies," Mr Thanapol said.

By the second quarter, Golden Land will sell two office buildings worth a combined 10 billion baht — Park Ventures on Wireless Road and Sathorn Square near Chong Nonsi skytrain station — to a real estate investment trust.

The company also plans to sell two non-core properties: Panorama Golf & Country Club on 2,090 rai in Sikhiu, Nakhon Ratchasima (for 693 million baht) and a 118-rai plot in Krabi's Nong Thalay.

Income from the sale of the two office buildings and non-core assets will help lower Golden Land's debt-to-equity ratio from 1.3 to less than 1.

Positive factors for the company include a potential economic recovery and the downward trend in prices for fuel and construction materials.

Shares of GOLD closed yesterday on the Stock Exchange of Thailand at 7.70 baht, up 10 satang, in trade worth 12 million baht.

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