V Property plans 2019 IPO to double launches

V Property plans 2019 IPO to double launches

Revenue gain to B13bn eyed from B6.5bn

V Property's Ikon Sukhumvit 77, worth 1.5 billion baht, is projected to be located on a nearly four-rai plot on Sukhumvit Soi 77. The company hopes to list next year to increase funds for more projects.
V Property's Ikon Sukhumvit 77, worth 1.5 billion baht, is projected to be located on a nearly four-rai plot on Sukhumvit Soi 77. The company hopes to list next year to increase funds for more projects.

Ten-year-old V Property Development Co plans to launch an IPO on the Stock Exchange of Thailand next year with an aim to double its project launches to 13 billion baht.

Chief executive Pornchai Lertananchoke said funding from the IPO will help it expand the company's residential development business from four projects worth 6.5 billion baht this year to at least six projects in 2019.

"We are 60-70% ready for an IPO," he said. "We are preparing to have project orders worth 8 billion baht before the IPO. AEC Securities will be a financial adviser."

The company last November established a new subsidiary, V Property Plus Co, with registered capital of 1 million baht to be a property management firm and take care of after-sales services for every project the parent firm launches.

To compete with large developers, the company will focus on providing services to help boost sales, such as product design and concept to tap into target groups.

"Despite the high level of new supply, the property market will continue to grow based on demand from younger customers seeking units in a convenient location," said Mr Pornchai. "Bangkok condominiums also attract strong purchasing power from foreigners."

The company will focus on condo development on Sukhumvit Road near BTS skytrain stations. It will also launch home office and townhouse projects with units priced from 8 and 2 million baht, respectively, in eastern Bangkok.

He said high-end single houses and townhouse projects in inner-city locations have become more attractive, with many new projects being launched by both large and medium-sized developers.

Bangkok's outskirts are seeing strong demand, particularly in eastern zones like Bang Na, where the potential for low-rise residential developments is strong based on demand from workers in eastern industrial estates.

In the first half this year, the company plans to launch two new condo projects worth a combined 3.5 billion baht. One is Ikon Sukhumvit 77, worth 1.5 billion baht, located on a nearly-four-rai plot on Sukhumvit Soi 77.

The project will have three eight-storey buildings and a total of 442 units sized between 23-47 square metres. It is expected to be priced below 100,000 baht per sq m or from 2 million baht per unit.

The second is Vertier, a high-rise condo located close to BTS Phra Khanong station, worth 2 billion baht with units priced from 200,000 baht per sq m.

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