After completing a high-value project, the property developer Krungthep Land Plc (KLand) will spend 1 billion baht for more land for future development and plans 7.3 billion baht worth of new projects.
Chawintorn Kunakornporamut, the deputy director for business development, yesterday said the company's cash flow has significantly increased after it transferred condominium units at The Pano, which was completed last year.
"That project took too long to develop _ five years," he said.
"Condos can take six years. They're risky and could face a downturn in the property cycle. Three years are better."
Launched in 2006, The Pano, valued at 6 billion baht and located along the riverside on Rama III Road, was a megaproject requiring a huge investment.
KLand spent 1 billion baht and borrowed 3 billion more.
The project comprises two phases. Phase one was a 55-story high-rise with 345 units valued at 4.7 billion baht, with 85% sold.
The average price has risen to 130,000 baht a square metre from 90,000 baht on the launch date.
The 1.3-billion-baht second phase, to be launched this weekend, features a low-rise building with 52 units priced from 16-150 million baht apiece.
The Pano is a joint venture project with Singapore's Fraser and Neave Ltd, which owns 49% of the project, while KLand owns 51%. Fraser and Neave also holds 40% stake in KLand.
"This project took a lot of time, but our partner is happy, as the project is generating a return on investment of about 20%," said Mr Chawintorn.
He said KLand will pay 1 billion baht for four plots of land in western Bangkok.
Next year, the company will launch three new projects including The Grand Ring Road-Udomsuk, worth 2 billion baht, on 70 rai where 150-180 single houses priced from 10-15 million baht will be developed.
Also planned is The Grand Pinklao on 200 rai on Pin Klao-Nakhon Chaisi Road.
About the author
- Writer: Kanana Katharangsiporn
Position: Business Reporter