Amata to boost land sales for B1bn revenue boost
SET-listed Amata Corporation Plc, Thailand's largest industrial estate, expects its total developed land sales this year to rise to the target of 1,000 rai in line with the recovering global and Thai economies.
Chief executive Viboon Kromadit said the expected increase in land sales, up from 610 rai in the previous year, should push revenue to 3 billion baht this year, up from 2 billion baht in 2016.
Developed land which the company expects to sell this year includes 450 rai in Amata City in Rayong province, which is part of the Eastern Economic Corridor (EEC), a flagship development promoted by the government.
It also expects to sell some 125 rai in Amata City in Vietnam, and another 75 rai in Amata City in Chon Buri, he added.
"This year, the company will focus more on revenue from recurring income, which creates sustainable revenue in the long-term," said Mr Viboon, referring to income from facilities and utilities services in the industrial estates, including tap water sales, power supply and waste water treatment.
He said Amata's total revenue from land sales and recurring income are evenly split at 50:50. However, the proportion of recurring income is expected to rise to 80%, while land sales are expected to drop to 20% in the future.
To reach the goal, Amata plans to increase the amount of land sold to factories. It hopes to sell the land to 1,500 companies, up from the current 1,300 companies. That would increase demand for facilities in the industrial estates, boosting recurring income.
This year, the company plans to develop its land bank in Rayong province of 3,500 rai to be ready for new investment in the EEC.
The EEC is the government project to create new investment and industrial cities, spanning 30,000 rai in the provinces of Rayong, Chon Buri and Chachoensao.
The company is also in talks with the aviation-related company Triumph Group Inc, a major aircraft parts producer which started investing in Thailand in 2004, about its possible expansion in Thailand's EEC, said Mr Viboon.
He said Triumph Group has informed Amata that Thailand has strong potential to be an aviation centre for the Asean region, as the country is developing U-tapao airport to be a commercial airport.
That would give Thailand three major commercial airports that can accept up to 130 million travellers per year.
Recently, Amata set up a joint venture with Stumpf Energy Solutions from Austria to launch a new company, Stumpf Amata Solar, with Amata holding 12% of the shares to provide solar rooftop installations, mostly to factories in its industrial estates. The company is also in talks with funds from Hong Kong, Malaysia and China, which seek to buy shares in Amata Corporation Plc.
AMATA shares closed yesterday on the Stock Exchange of Thailand at 16.30 baht, unchanged, in trade worth 81.8 million baht.