K.P. Group, a contractor-turned-developer, plans to spend 600 million baht to develop a condominium in Phuket and a single house project in outer Bangkok next year.
Managing director Amrit Srikuruwan said the project in Phuket is located on a two-rai site, 900 metres from Patong Beach close to its first condominium project, the 480-million-baht Art@Patong launched in late 2009 with 60% sold.
The group, which shifted from construction business five years ago, is looking for a 10-rai plot in outer Bangkok to develop a housing estate in a mid-priced range or between four and six million baht a unit.
"We're developing residential projects worth 100 million baht a year and expect to increase the value to 200 million baht, depending on investment opportunities," he said.
This year, it spent 380-390 million baht to develop Art@Thonglor, an eight-storey condominium project with sales value of 500 million baht.
It is located in Soi Thong Lor 25, comprising 102 units sized 36.50 and 71.50 square metres. The average price is 95,000 baht per sq m.
Target customers will be 35% each for Thai and foreign buyers and 30% investors seeking units for rent. The project will be developed under one of the group's subsidiary Art@Thong Lor with Kiatnakin Bank providing project finance.
"Thong Lor is like Singapore's Orchard Road and Hong Kong's Nathan Road. It is a popular location among Japanese and Korean residents. Investors buying a condo unit for rent can get a yield as high as 12%," he said.
There are around 3,000 condominium units under construction and half of them are purchased for rent.
In 2009, the group launched two condominium projects, Arisara Place and Ban Arisara, on Koh Samui.
The projects are joint ventures with partners with sales value of around 120 million baht each.
It still runs a construction business under A.P.G. Denwick Co with a capacity of three projects a year worth around 150-180 million baht each.