Sena lines up 22 projects

Sena lines up 22 projects

Developer aims to double presales by year-end, tapping real demand

Ms Kessara says 2019 is a harder year because homebuyers' access to finance will be curbed.
Ms Kessara says 2019 is a harder year because homebuyers' access to finance will be curbed.

SET-listed Sena Development Plc plans to launch 22 new residential projects worth a combined 24 billion baht in 2019.

It aims to double presales to 19.6 billion baht by the end of the year.

Kessara Thanyalakpark, deputy chief executive of Sena, said all of the new projects, totalling 7,457 units, will tap real demand. More than half will be developed through joint ventures with both local and foreign partners.

"With the Bank of Thailand's policy to tighten the loan-to-value (LTV) ratio, we need to target real demand, such as those buying a house when getting married, expanding their family or relocating," she said.

Ten projects will be condominiums in Greater Bangkok worth a combined 19.26 billion baht, accounting for 80% of the total. Twelve projects are scheduled to be low-rise (single-house and townhouse) projects worth 4.75 billion baht.

Of the new condo projects, seven worth 16.6 billion baht will be joint ventures with Hankyu Realty, a Japanese property firm that Sena has joined with since 2017. The two-year partnership saw 11 condo projects worth a combined 35 billion baht.

Six of the 12 low-rise projects will be in Greater Bangkok, wholly developed by Sena.

The remaining six low-rise projects will be joint ventures with housing developer Proud Vanij Co, owned by the second generation of Nonthaburi-based Kunalai Development Co.

The joint venture low-rise projects will be in Lop Buri, Udon Thani, Khao Yai in Nakhon Ratchasima and the three Eastern Economic Corridor provinces where Proud Vanij has land plots and housing projects on hand.

Last November, Sena spent 403 million baht to buy shares of Proud Vanij and increase its registered capital from 400 million baht to 600 million.

Sena holds a 55% share of Proud Vanij, which was renamed Sena Vanij Development Co with the aim of developing low-rise projects in provinces.

The remaining 45% stake is held by the Sangkavanich family, a former major shareholder of Proud Vanij.

"2019 is a more difficult year because homebuyers' access to finance will be more limited after the new lending curbs take effect," Ms Kessara said. "The new rules will affect not only those buying and borrowing a second mortgage, but also first-time homebuyers, as banks will give them only 100% of the credit line, not higher than 100% like earlier."

To help customers who may be affected by the new LTV limits, Sena is promoting a campaign to encourage people to book a unit at Niche Mono Sukhumvit-Bearing condo, which is scheduled to be completed by year-end.

"As we collect a down payment of 15% of the unit price, we will suggest customers who may be affected by the new LTV limits make an additional down payment of 15% before the units are transferred," Ms Kessara said. "We will offer a higher interest rate than banks are paying for deposits for the down payment."

SENA shares closed yesterday on the Stock Exchange of Thailand at 3.52 baht, unchanged, in trade worth 823,500 baht.

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