At Real Asset, 8 projects ahead

Real Asset Development Co Ltd, a property arm of the Juangroongruangkit family, has announced eight residential projects worth a combined 7 billion baht to be launched in the next 14 months.

Sakulthorn: Wary of condo oversupply

Director Sakulthorn Juangroongruangkit said half of them will be in this year's fourth quarter and the rest spread throughout next year.

The focus will be on two segments _ townhouse/home offices (70% of project values) and condominiums (30%).

"Single houses are not our expertise, and condominiums are quite risky," Mr Sakulthorn said yesterday.

Most of the projects will be located on or near Bang Na-Trat, Ram Intra and Vacharapol roads in eastern Bangkok, while the condominiums will be close to existing mass transit lines.

"We're seeing a condo oversupply in locations not close to mass transit," he said.

Among the eight new projects, only one will be a high-rise, the eight-storey Ascend condominium.

Located on a 300-square-wah plot in the Ekamai-Thong Lor area, it will feature 93 units worth a combined 400 million baht and be introduced next month.

Last week, Real Asset launched Plex-Bangna, a townhome project with 238 units worth 1.34 billion baht on a 24-rai site close to the city limit on Bang Na-Trat Road.

Plex-Bangna is the company's second project involving building construction following Enterprize Park with 80 home office units worth 700 million baht, introduced early this year.

The company expects to close sales of Plex-Bangna by mid-2013.

"Our very first developments will be on the group's land bank plots, which we've been accumulating for a long time now, so we'll need to buy more land in the future. We're also interested in being listed on the stock market for greater reliability but not in the next few years."

Established as Thai Summit Property Co Ltd in 2005, with registered capital of 900 million baht, Real Asset Development was involved in only land development until now.

"Property is not a business for anyone without capital," said the 29-year-old second son of Somporn, the president of Thai Summit Group, the country's largest auto parts maker, and ranked the 22nd-richest person in Thailand by Forbes magazine this year.

The family's other holdings include Pattana Golf Course in Laem Chabang and the Thai Summit Tower on New Phetchaburi Road.

Mr Sakulthorn is also a vice-president of Business Excellence Co Ltd, another subsidiary of the Thai Summit Group.

He said the group's property business is very small compared with the auto parts operation.

About the author

Writer: Kanana Katharangsiporn
Position: Business Reporter