Ananda sets up prefab construction

Ananda sets up prefab construction

The SET-listed developer Ananda Development Plc has set up a construction company for its residential projects using the prefabrication method to avoid construction delays.

The Elio Sukhumvit 64 condo project launched early this month will comprise four eight-storey buildings with 962 fully furnished units sized from 21 to 30 square metres and priced at 64,000 baht per sq m.

"Having our own construction firm will help us manage and speed up the construction," said chief executive Chanond Ruangkritya.

Many condo projects now face construction delays _ some cannot even begin construction on schedule despite brisk sales _ due to the limited supply of contractors and workers, he said.

In addition to prefabrication, Helix Co, the new subsidiary, will use parallel sequencing and load-bearing walls.

Ananda plans for the subsidiary to take one-third of its high-rise projects, starting with two worth 2-3 billion baht each. The remaining capacity will be reserved for low-rise housing projects.

Mr Chanond said labour shortages and the long environmental impact assessment (EIA) approval time are other problems delaying construction.

In future, Ananda plans to apply prefabrication in full scale so that construction can start at the prefab factory while the project is pending an EIA approval, which usually takes at least six months.

"For high-rise projects, this year we'll start with the conventional construction method mixed with parallel sequencing which helps speed up the construction to not more 13-15 months," he said.

The company currently uses prefabricated parts from a producer and will soon invest in its own factory.

Ananda is in talks with foreign investors to set up a property project in which it owns 51%.

Besides shared profits, the benefits Ananda will get from the joint venture are lower selling, general and administrative expenses, a short-cut to boost market share and a 10% management fee without having to hire new staff.

"We aim to command half of the condo market along mass transit lines, which will have more than 200 stations over the next decade," Mr Chanond said. Currently, there are 57 stations.

Ananda is already the No.1 condo developer with the largest number of units located within 300 metres of existing mass transit stations, according to property consultant CB Richard Ellis (Thailand).

During the first three months of the year, it spent 2 billion baht to buy new plots for new projects and will invest 3 billion baht to buy more for the rest of the year.

In June and July, it will issue bonds worth 3 billion baht to finance new projects. Ananda plans to launch 13 new projects _ seven low-rise ones and six condos _ worth more than 24 billion baht in 2013.

It targets to achieve 14.9 billion baht in presales and 12 billion baht in revenue this year. Currently, it has a sales backlog of 7.8 billion baht compared to a net loss of 287 million baht on revenue of 5.13 billion baht last year, both down 10% year-on-year.

ANAN shares closed yesterday at 4.20 baht, up six satang, in trade worth 75.47 million baht.

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