Thailand property developer Pace Development Corporation targets a net profit 2014 after it introduces its first villa project, MahaSamutr in Hua Hin, worth Bt3.8 billion, in the Q4 2013.
Chief executive officer Sorapoj Techakraisri said yesterday that Bt2.7 billion of the development budget would be for 90 villas on the 120-rai (19-hectare) site, Bt500 million for a country club and Bt600 million for a large lagoon, which the company expects will become a new landmark of Hua Hin.
Half of the budget will be borrowed from a bank, which is now in the negotiating process, and half from capital to be raised on the stock market.
About 80 per cent of its target customers will be domestic buyers wanting a second home and the rest foreigners looking for a vacation home in Hua Hin.
The schedule is for bookings to open on October and the grand opening to be held in April of next year.
Construction will commence early next year and be completed by year-end. This will be the main source of its revenue and net income next year.
Pace also plans to launch a condominium project early next year on Langsuan Road in Bangkok.
The company plans to take advantage of a new rule allowing it to list on the Stock Exchange of Thailand next quarter by increasing its registered capital from Bt1.45 billion to Bt2.05 billion.
The new rule allows a company with market capitalisation of at least Bt5 billion to list even though it continues to show a loss.
The first company applying under this relaxed rule is Ananda Development.
In its filing to the Securities and Exchange Commission last November 29, Pace reported a 67-per-cent rise in sales to Bt912.8 million in the first nine months of last year from the same period in 2011. It also turned a net profit of Bt84.8 million in the period, which was better than the net loss of Bt103.2 million in the same period of 2011.
The company targets revenue of Bt400 million this year mainly from transfers of condominiums at Sala Daeng, Bangkok.
It has only one project that is being marketed - MahaNakhon, also in Bangkok, worth Bt12 billion. It is under construction and will be completed and transferred to buyers in 2015.
The country club is targeted at families with vacation homes in Hua Hin and surrounding areas since most villas currently available in the resort town don’t have the facilities to meet the needs of an active lifestyle, explained Sorapoj.
MahaSamutr will commence sales of its country club membership in June 2013. Pace will have a pre-sales event for existing customers on June 28 while public sales will commence when the show unit is complete in April 2014. The project is expected to be completed by the end of 2014 and the company expects to sell 75 percent of the project to Thai nationals and 25 percent to foreigners.