SET-listed Charn Issara Development Plc (CI) will launch a new condo project worth 1 billion baht in Khao Takiab as the company's first entry in the Hua Hin area after working in nearby Cha-am since 2004.
Assistant managing director Ditawat Issara said the company last year acquired a plot in Khao Takiab, eight kilometres away from Hua Hin's centre area, to develop a high-rise condo project with units priced from 180,000 baht per square metre.
"We choose only prime locations for new projects, as the property market and the economic outlook is unfavourable," he said. "We wanted to develop a condo project in Hua Hin long ago but were unable to seek a land plot until last year."
The company has developed many property projects in Cha-am over the last 15 years. The first project was the low-rise condo Baan Ploen Talay in 2004 as part of diversification away from the highly competitive Bangkok residential market.
Charn Issara has a large-scale development in Cha-am, Thew Talay Estate Cha-am-Hua Hin, on over 100 rai. Two projects, Baan Thew Talay Aqua Marine and Baba Beach Club Residence Phase 1, sold out.
"Hua Hin's tourism market is healthy with both Thai and foreign tourists," Mr Ditawat said. "It is also driven by the marketing campaigns of the Tourism Authority of Thailand."
By the end of 2020, Charn Issara will sell two projects worth a combined 2 billion baht into the Sripanwa Hospitality real estate investment trust (REIT).
One will be Baba Beach Club Hua Hin's main hotel worth 1.5 billion baht, part of Thew Talay Estate. The 12-storey hotel consists of 50 guest rooms, convention rooms and meeting rooms and will open by the end of 2020.
The other will be Baba Beach Club Phuket Hotel on Na Tai Beach in Phangnga province, featuring 16 beachfront units worth 500 million baht. It began operations more than a year ago.
"The two properties will lever up the Sripanwa REIT's value from 4 billion baht to 6 billion baht," Mr Ditawat said.
CI shares closed last Friday on the Stock Exchange of Thailand at 0.84 baht, up one satang, in trade worth 52,000 baht.