Pruksa preps 30 projects worth B29bn

Pruksa preps 30 projects worth B29bn

Uten Lohachitpitaks
Uten Lohachitpitaks

SET-listed developer Pruksa Holding (PSH) is planning to launch 30 new residential projects worth a combined 29 billion baht, with a shift to the upper-priced segment to balance those in the lower-end market affected by negative factors.

Uten Lohachitpitaks, group chief executive, said half of the new projects would be in high-priced segments priced 7 million baht and above per unit, as housing demand in the lower-end segments was affected by the economic slowdown and potential buyers were having their home loan applications rejected.

"With this launch, we expect 30% of our portfolio will consist of units priced at 7 million baht and above, up from 10% in 2019 and earlier. Units priced at 3 million baht and lower will decrease to 40% from 70%," he said.

The new projects will comprise 17 townhouse projects worth 11.8 billion baht, 10 single detached house projects worth 13.2 billion baht and three condo projects worth 4 billion baht.

PSH aims to have 28 billion baht in consolidated revenue by the end of 2024, up from 26.1 billion baht in 2023 which fell by 9% from 2022.

Of the total revenue target, 25.5 billion baht would be from the residential development business, up from 22.3 billion baht in 2023, which had declined by 18% from 27.2 billion baht in 2022.

Some 2.3 billion baht would be from the hospital business, up from 1.82 billion baht last year, representing a 50.2% increase from 2022.

PSH reported a net profit of 2.34 billion baht in 2023, a decline of 17.5% from 2022.

"We plan to increase the proportion of revenue from recurring income from 9% last year to 25% in the next five years, after we spun off the precast production business under Inno Precast and the construction business under Inno Home to take on projects from outside."

In 2024, PSH will invest 10.5 billion baht in land acquisition and 5 billion baht in the CapitaLand Wellness Fund, a joint venture with Singapore-based property group CapitaLand for investing in wellness and healthcare-related real estate in Southeast Asia.

It will also spend 3.5 billion baht on the hospital business to expand a new specialised hospital in the Sukhumvit area, add 600 beds to the company's nursing home business during 2024-26 and add a further 50 beds at Vimut Hospital, bringing the total number to 150.

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