Raimon goes fractional

The listed developer Raimon Land Plc will start selling its first two units under fractional ownership next week with expected sales of 96 million baht.

The two remaining units of The Heights, the company’s luxury condominium in Phuket, will be offered at 2.7 million baht for a share of a 220-square-metre unit, and 4.7 million baht for a share of a larger unit of 410 sq m.

Each unit is divided into 13 saleable fractions. Each fraction allows its owner to spend 21 days per year and to also have access to more than 160 properties under the IFA Collection and the Registry Collection property networks worldwide.

The Heights is among three projects under Private Residence Clubs that Raimon Land plans to sell on fractional ownership basis. The company expects to sell at least five units of its Northpoint condo in Pattaya and at least 40 units of The River in Bangkok in the near future.

The Heights Phuket

The Heights Phuket

It hopes to close sales of the first two units within six months.

Patrick Hanes, Raimon Land’s consultant for Private Residence Clubs, said the new product would help add diversity and speedy sales.

Unit prices sold under fractional ownership are higher than the equivalent price for full ownership. For example, the three-bedroom unit of the Heights is normally priced at 41 million baht, but the unit could earn up to 61 million baht when divided into fractions.

“The fractional ownership concept has been popular in the United States in the last 10 years and makes US$2 billion each year,” he said.

Raimon Land recorded a loss of 54.56 million baht in the first nine months of this year compared with net profit of 60.5 million a year earlier. Revenue totalled 2.59 billion baht, up 27% from 2.041 billion in the same period last year. Net profit in the third quarter rose by 143% to 171 million baht on revenue of 1.06 billion, up 22% year-on-year.

RAIMON shares closed yesterday on the SET at 31 satang, down one satang, in trade worth 6 million baht.

SOURCE: Bangkok Post

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