Hemaraj Land and Development (HEMRAJ), the country's leading industrial estate developer, brushed aside reports that it plans to raise funds through a soon-to-launch property fund in the next few years, saying cash from operations is sufficient for a six-year investment plan.
Paopitaya Smutrakalin, the director of planning and investor relations, denied reports last week that the company wants a property fund to finance future projects and investment plans to prepare for the Asean Economic Community.
"Well, we like the idea of a property fund, actually. But the company has no plans to finance investment by launching a property fund within the next few years," said Mr Paopitaya.
The company has set an investment budget of 40 billion baht over six years until 2018, covering industrial estates, utilities, power and property projects.
Hemaraj's land bank totals 7,700 rai, with a plan to develop 4,000 rai on the Eastern Seaboard for a new industrial estate project in Chon Buri.
The firm also plans greater exposure in the power sector, focusing on seven small power plants.
Additional industrial space for rent will be developed to the tune of 100,000 square metres this year.
Project expansion can be financed through bank loans, bonds and internal cash flow.
"The company's revenue will jump this year, with double-digit growth expected from four businesses lines," said Mr Paopitaya.
For industrial estate sales alone, Hemaraj aims for 1,600 rai and expects to recognize 60-70% of a 3,300-rai backlog this year. Revenue from utilities, namely water it sells to factories in the estates, is expected to reach 2 billion baht.
Revenue from factories and property for rent will rise once new rental space is added. Power revenue is forecast at 1.4 billion baht a year.
The company last year had a net profit of 2.29 billion baht, up by 327%.
Shares of HEMRAJ closed yesterday on the Stock Exchange of Thailand at 4.76 baht, up 36 satang, in trade worth 763 million baht.