Pruksa expands land budget by B7bn: 32 launches planned worth a total of B25bn

May 11–Listed-developer Pruksa Real Estate Plc plans to invest a further 7 billion baht in purchasing land this year bringing the total investment to 11 billion.

The country’s second-largest developer has already spent 4 billion baht on new land aquisitions in the first four months of the year.

Pruksa president and chief executive officer Thongma Vijitpongpun said the firm would invest more in land acquisition even though there was no clear end in sight for the country’s political problems.

“If they [the political problems] prolong as long as the end of the year without any violence, we will continue investment and maintain our business target and expansion plans,” he said yesterday.

The developer plans to launch 32 new projects, worth a combined 25 billion baht, by the year-end.

By June, Pruksa will launch three new condominium projects worth a total of between 5-6 billion baht. They will be located on Soi Aree, Soi Suan Phlu and the Saphan Taksin area, with unit prices starting from 2.2-2.9 million baht a unit.

Mr Thongma said the new condominium projects would help boost the firm’s presales in the second quarter to be on par with the first quarter despite expectations that property sales would be poorest during the current quarter.

Pruksa recorded first-quarter presales of 8.58 billion baht, the highest in its history. It also launched 17 projects worth a combined 8.79 billion baht.

To date Pruksa has a sales backlog of 17 billion baht — with 5 billion to 6 billion baht to be realised in the second quarter and a total of 10.9 billion to be realised within the year, said Mr Thongma.

The company expects the expiry of property tax incentives at the end of this month to impact on its net margin by at least 3%, but tax privileges under the Board of Investment’s home programme will increase Pruksa’s margins by one percent this year.

As a result, the company’s net profit margin would not fall below 16% for the whole year, he said.

Pruksa yesterday reported first-quarter net profit of 1.23 billion baht, up by 79% year-on-year but down by 25% quarter-on-quarter, on sales of 6.67 billion, up by 76% year-on-year and down by 14% quarter-on-quarter.

The company plans to issue debentures with a maximum value of 2.5 billion baht with maturity of between three and five years to fund business expansion and an investment of one billion baht in a precast factory. Bangkok Bank, Kasikorn Bank and CIMB Thai Bank would be the underwriters.

PS shares closed yesterday on the Stock Exchange of Thailand at 15.7 baht, up 60 satang, in total trade of 82.58 million baht.

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