Sena puts off Lat Phrao condo launch

Sena Development Plc (SENA) may delay launching a new condominium in Lat Phrao due to poor sentiment after the recent political violence, according to executive director Kessara Thanyalakpark.

Despite the strong demand in the Lat Phrao area, the condominium will now be launched in the first quarter of next year, instead of the fourth quarter of this year.

The company will evaluate the supply and competition in the area again before making a final decision, she said.

Sena’s presales dropped by 20-30% in the second quarter, compared to the first quarter.

However, it is confident of achieving revenue growth of 20% for the whole year to 1.5 billion baht.

Currently, the company has a sales backlog of 1.1 billion baht, around 800 million baht of which would be realised this year.

The company also plans to launch six projects worth a combined 3.5 billion baht this year.

Ms Kessara said Sena had set the budget for land purchases at between 700 million baht to 1 billion baht. So far, it has spent 280 million baht buying plots in urban areas.

However, the company plans to aggressively expand its role in the rental business and is now studying the investment feasibility in a rental apartment with commercial spaces in the Charoen Krung area.

The project, of which construction may commence late this year, will generate revenue of approximately 20 million baht a year, or not exceeding 5% of total revenue, after its completion at the end of 2012.

At present, Sena has only one rental apartment on Phahon Yothin Road which generates income of only 1-2% of total revenue.

“We are studying to determine whether we purchase some golf courses as well,” she added.

The company reported revenue of 333 million baht in the first quarter, down 5% year-on-year, while its net profit was 80 million baht, up 19% year-on-year.

SENA shares closed yesterday on the Stock Exchange of Thailand at 1.91 baht, unchanged, in trade worth 4.42 million baht.

SOURCE: Bangkok Post