SET-listed developer Noble Development is set to debut its first overseas project in London to diversify away from the risks of an unfavourable domestic market.
Thongchai Busrapan, Noble's chairman and co-chief executive, said the strong network of nCrowne, a major shareholder, will help the company penetrate the Chinese and Hong Kong markets, which have potential customers for London projects.
This year the company plans to spend 1 billion baht to acquire apartment units in London expected to return 2-3 billion.
The same amount of investment will go to at least one overseas project every year going forward.
Mr Thongchai said the timing is right as a stronger baht will favour offshore investment.
This strategy will also diversify from risks such as softer domestic demand amid the unfavourable Thai property market.
For new projects in Thailand, Noble plans to launch seven new condos worth a combined 25 billion baht, aiming for a presales target of 12 billion this year.
Two of them are joint ventures with giant firms, including Hong Kong-based investment group Hongkong Land and SET-listed BTS Group Holdings. The latter also has a 9.11% stake in Noble.
"BTS has insight into the viability of plots along mass transit lines, as the builder and operator of such lines," said Arttavit Chalermsaphayakorn, Noble's chief financial officer.
Last Thursday Noble reported spending 41 million baht to buy 50% of the shares of Ratchada Alliance Co from SET-listed developer Sansiri. The other 50% stake is held by U City, a property firm and a BTS subsidiary.
Ratchada Alliance plans to launch its first joint venture condo project worth 2 billion baht on two rai, 180 metres from MRT Lat Phrao station on the Blue Line and 70m from MRT Ratchada station on the Yellow Line, in the second quarter.
"Although BTS has joint ventures with other developers, we are the only one in which BTS holds a stake," said Mr Arttavit, who joined Noble last August after resigning from SET-listed WHA Corp.
Noble and BTS signed both the joint venture for the Ratchada project and a framework agreement for future joint venture development.
The company also expects to have residential property developed in U-tapao after BTS's consortium won the bidding to develop U-tapao airport last week.
Of the seven new projects it expects to launch this year, two will be relaunched projects, including State 39, an off-plan condo that in 2018 was only 30% sold.
Noble redesigned State 39 to lower the average selling price from 250,000 baht per square metre to 190,000 baht, or from 7 million baht a unit to 5 million.
Sales value should be reduced to 3.6 billion baht from 4 billion, said Mr Arttavit.
"We will balance between gross profit margin and turnover by lowering gross profit margin from the earlier target of 40% to 35%, as well as speeding up sales," he said.
NOBLE shares closed yesterday on the Stock Exchange of Thailand at 17 baht, up 50 satang, in trade worth 22.2 million baht.