Built Land has plan to expand with IPO funds
Three projects eyed after year-end listing
Property developer Built Land Plc plans to launch three projects worth a combined 3 billion baht after raising funds from the stock market by the end of this year.
Chief executive Chairat Thampeera said proceeds from an initial public offering (IPO) would enable the company to expand. "Our business expansion is limited as we rely on borrowings largely from our parent firm," he said.
Built Land is a subsidiary of SET-listed contractor Pre-Built Plc. With registered capital of 300 million baht, it was established in 2009 as the parent company diversified into property development in a bid to generate higher net profit than available in the construction business.
With Thanachart Securities as a financial adviser, Built Land expects to have an IPO placed in the fourth quarter.
After the IPO, it aims to have 2.57 billion baht in presales and 2 billion in revenue in 2017, rising from its respective targets of 1.5 billion and 1.8 billion this year.
Last year, the company recorded 700 million baht in presales and 234 million in revenue. In the first six months, it transferred units worth 600 million baht and had a sales backlog of 2 billion baht.
In the second half, it will launch Lesto Condo Sukhumvit 113 on a seven-rai site near the future Samrong skytrain station. With 786 units worth 1 billion baht, around 400 units in phase one will be opened for sales in the third quarter.
In the first half, it launched two projects including Tempo Quad Condo in the Saphan Mai area worth 400 million baht, now 50% sold.
The other was The Ritmo Chaiyapruek-Wongwaen on a 45.5-rai site in the Bang Kruai-Sai Noi area with 458 townhouses and duplex houses worth 1 billion baht.
"The property market in the first half was unfavourable due to the sluggish economy but projects near mass transit lines had a good sales rate," Mr Chairat said.
Built Land also has a plot of about 100 rai in Bang Kruai-Sai Noi where it will develop low-rise units once it gets momentum from commercial operation of the Purple Line.