SET-listed developer Nusasiri Plc will invest 1 billion baht to acquire 200 non-performing condo units at the State Tower skyscraper, then renovate and resell them at a target yield of 30%.
Chief executive Visanu Thepcharoen said the company would buy the units from Bangkok Commercial Asset Management Co (BAM) this month. They are located on several floors, with size starting from 50 square metres.
It plans to launch the sale in the second quarter. The units will be priced at lower than 100,000 baht per sq m to attract buyers because although the condo is in a good location on Silom Road, being 300 metres from Taksin skytrain station, it was completed in 2001.
According to BAM website, there are many condo units at the 68-storey building offered for sale with sizes from 68 sq m priced from 4 million baht a unit or around 60,000-70,000 baht per sq m.
Mr Visanu said this year Nusasiri planned to launch four new projects worth a combined 23 billion baht. They are all in tourist destinations: two in Si Racha worth a total of 13.7 billion baht, one in Pattaya worth 8.5 billion and another in Phuket worth 880 million baht.
"We will target investment buyers as home purchasers are delaying their decisions because of the economy," he said.
The company will introduce a rental guarantee programme at its Pattaya and Phuket sites with a guaranteed yield of 6-7% per year as the two destinations are in demand among Thai and foreign tourists.
The Pattaya site on 160 rai will have an investment condo project with 914 units worth 4.76 billion baht. It will also spend 780 million baht to build a hotel and 800 million baht for a water park.
In Phuket, it will develop Nusa Raya on a seven-rai site near Bang Tao Beach, which will comprise 191 condo units from 45 sq m priced 100,000 baht a sq m and a hotel.
"Projects can be sustained if there are hotel and other services provided." said Mr Visanu.
In Si Racha, Nusasiri found strong demand among the Japanese and a long waiting list and so will not offer a guaranteed rent scheme. "The current yield in the market is as high as 12-13% a year," he said
It has nine residential projects mainly in Greater Bangkok, and a sales backlog of 2.27 billion baht to be realised this year.
Nusasiri aims for 3 billion baht in presales and 2 billion in revenue this year, up from 1 billion and 1.27 billion in 2014. It reported a net profit of 106 million baht last year, up from a net loss of 51.7 million baht a year before.
NUSA shares closed Friday on the SET at 99 satang, unchanged, in trade worth 19.4 million baht.