Sansiri to launch B75bn of developments

Sansiri to launch B75bn of developments

Company aims to break revenue record

Mr Srettha points out that the company's aggressive strategy for 2023 is supported by a forecast of economic recovery.
Mr Srettha points out that the company's aggressive strategy for 2023 is supported by a forecast of economic recovery.

SET-listed developer Sansiri Plc is planning to launch 52 new projects worth a combined 75 billion baht this year, with the aim of securing an all-time high of 55 billion baht in presales and 40 billion baht in revenue.

President and chief executive Srettha Thavisin said the company's aggressive strategy in 2023 was supported by a forecast of economic recovery.

"The recovery this year might not be as strong as expected because of many risks, including an economic revival of many countries that will have an impact on Thailand," he said. "Another risk is soaring energy and commodities prices."

Its new project launches in 2023 will be the highest-ever in terms of value in the residential development business, breaking the record set by SET-listed Pruksa Holding Plc, which launched 56 projects worth 59 billion baht in 2017.

Wichan Wiriyaphusit, Sansiri's chief financial officer, said the bullish development plan this year stemmed from an aggressive acquisition of land plots in 2020-22, during which it spent a total of 15 billion baht.

At present, Sansiri has land plots in Greater Bangkok and the provinces for the development of more than 50 projects with a combined sales value of over 100 billion baht, excluding those being launched this year.

"We can launch new projects of a greater number than we announced today but this will largely depend on the market situation," Mr Wichan said. "We also have sufficient capital to do so as we issued the largest debenture in the property sector."

Sansiri issues around 8 to 12 billion baht of debentures every year. It also plans to spend 10 billion baht to purchase new plots of land in 2023 for development next year.

It expects to have 55 billion baht in presales in 2023, a 10% growth from 50 billion baht last year, which jumped by 49% from 2021, while revenue will total 40 billion baht.

Last year Sansiri transferred units worth a combined 36.8 billion baht.

As of the end of 2022, it had a sales backlog of 20 billion baht. Of that, 12-13 billion baht will be realised this year. It also had an inventory of around 50 billion baht available for sales at existing projects.

Around 11 billion baht was of ready- to-move units, of which 8 billion baht were condos, said Mr Wichan.

Uthai Uthaisangsuk, Sansiri's chief operating officer, said the company aimed to have 12 billion baht in presales from foreign buyers, up from 7.8 billion baht last year.

"We will tap new potential markets like Cambodia, Vietnam, Myanmar and Laos in addition to our strong markets like China, Taiwan, Hong Kong and Russia," he said.

More than two thirds of the new projects this year will be 30 low-rise housing projects in all pricing segments worth a total of 50.7 billion baht.

They will comprise 18 single detached house projects worth 38.4 billion baht, three townhouse projects worth 1.8 billion baht, and nine projects with a mix of single detached houses, townhouses and duplex houses worth a combined 10.5 billion baht.

"One of our new models will be Sansiri communities in eight locations on land plots sized around 100-500 rai each," Mr Uthai said.

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