Preuksa plans 15-20 new projects in fourth quarter

Listed-developer Preuksa Real Estate Plc’s plans to launch 15-20 new projects worth 10-15 billion baht in the fourth quarter.

The country’s second-largest developer took a bullish position as the housing market is recovering, said chief business officer Prasert Taedullayasatit.

PS has increased the number of project launches this year from 22 to the current 37 planned now, after the company diversified its business model and increased its financial readiness.

“When an opportunity comes [to us], we can take it all,” he said.

At the end of the third quarter PS’s debt-to-equity ratio stood at 0.4 to 0.5 times while interest-bearing debt was 0.1 times.

PS has cut its project lead times and a low-rise unit can now be delivered to customers within 94 days, down from 104 days in mid-year.

“Today, we develop houses like a manufacturer,” said Mr Prasert.

The fourth quarter launches will increase the number of PS projects in the Greater Bangkok to 100.

The developer gained total sales of 690 million baht from new and existing projects, some 94 projects with unsold units totalling 19 billion baht, in the first week of October. If this rate of sales continues PS would top its 2009 sales target of 18 billion baht, Mr Prasert said.

Kim Eng Securities (Thailand) yesterday reported PS presales of 6 billion baht in the third quarter – another record high – up by 30% year-on-year and 20% quarter-on-quarter. For the year, PS posted presales of 15 billion.

The securities firm also forecast third-quarter revenue of 3.82 billion baht for the developer.

The company has a sales backlog of 16 billion baht – half of which would be realised in the fourth quarter.

He said the company planned to launch 37 new projects in 2010 and spend 4-5 billion baht to buy new land plots as it expected the housing market’s growth would continue. Large developers account for more than half the market.

“Our housing development plan next year will have more segments which will be divided by design and lifestyle of target group, not only prices,” he said.

Having a variety of product segments would help the firm get closer to its customers, he said.

Mr Prasert said PS was not worried about competing in any locations or price. But a key challenge would be increasing its share of the condominium market into double figures from the current 2%. But this could rise to 10% by year-end when completed units are transferred to owners, he said.

“We will grab the largest market share in the next two years,” Mr Prasert said.

PS shares closed yesterday on the SET at 14.30 baht, up 10 satang, in total trade of 48.41 million baht

SOURCE: Bangkok Post