Supalai Plc (SPALI), the SET-listed developer, is stepping up its international expansion with plans to spend 2 billion baht this year starting with the Philippines.
President Prateep Tangmatitham said while Indochina in general is attractive for investment, the Philippines is even more so.
"Economic and population growth in the Philippines is higher than in Thailand," said Mr Prateep, who was ranked Thailand's 31st-richest person by Forbes magazine last year.
The Philippines' gross domestic product grew by 6.6% last year, while the Thai economy expanded 6.4%.
A decade ago, the two countries had similar-sized populations, but the Philippines now has 95 million people and Thailand 70 million.
Earlier this month, the company registered a subsidiary in the Philippines and signed a memorandum of understanding to buy an office building in Manila with a total area of 2,000 square metres worth 1 billion baht.
The investment is expected to contribute 100 million baht to company revenue this year.
"For developers investing in foreign properties, acquiring a complete building is much easier than developing a project from scratch. It also generates income immediately," Mr Prateep said.
The company also wants to invest another 1 billion baht this year in other Southeast Asian countries, mainly Myanmar and Indonesia.
However, Vietnam is not appealing due to its fluctuating currency rate.
Supalai's first foreign investment was in Beijing, where it developed a low-rise project before the 1997 financial crisis through a joint venture with MK Real Estate Plc.
Supalai plans to spend 15 billion baht this year including 5 billion for new land and 8 billion for new project construction.
The company will launch 25 new projects in Greater Bangkok and upcountry worth a combined 25 billion baht - 16 single-house and townhouse projects and nine condominiums.
One new province for Supalai is Surat Thani, where it will buy a 50-70-rai plot for a single-house project in Muang district.
It launched its first project there with 230 single houses worth a combined 1 billion baht on 60 rai last November and saw a good sales rate.
"Surat Thani's economy is led by rubber crops and tourism. Though its overall output is lower than that of Nakhon Si Thammarat, its urbanisation is larger," Mr Prateep said during a visit to Surat Thani.
Supalai targets 26 billion baht in consolidated sales and 13.5 billion in consolidated revenue this year, up from 23 billion and 11.7 billion last year, respectively.
Net profit last year was 2.74 billion baht, up by 6.8% from 2011.
The company hopes to maintain a gross margin exceeding 40% and a net margin of not more than 23%.
The firm has 70 projects on hand, with a total of 24,500 units worth 76 billion baht for sale, and a sales backlog of 31.3 billion baht.
Shares of SPALI closed yesterday on the SET at 21.80 baht, down 30 satang, in trade worth 96.4 million baht.