Startup developer planning two Bangkok condos

The new property firm One Property Development is preparing to launch at least two condominiums worth a combined 1.2-1.5 billion baht this year.

The first project will be the 500-million-baht Colory Vivid budget condominium located on one rai on Soi Pracha Rat Bampen 6 in the Ratchadaphisek-Huai Khwang area, around 280 metres from Huai Khwang MRT station, said the company’s managing director Chaiyapong Vechamamontien.

The eight-storey building will have 190 units sized between 27 and 57 square metres and priced around 60,000 baht per sq m or between 1.59 million and 3 million baht per unit. The project, to be launched tomorrow at the House & Condo Fair at the Queen Sirikit National Convention Center, is expected to be 50% sold at the fair.

Construction is scheduled to be completed and the units transferred to buyers in June 2011.

The second project will be an 800- million-baht low-rise condominium on Soi Sukhumvit 40, with a launch likely late this year.

According to Mr Chaiyapong, a future project would be located in the Phahon Yothin area and worth around 450-650 million baht for development next year.

Established in September with registered capital of 100 million baht, One Property Development is 30% held by Mr Chaiyapong, the owner of the branded sportswear manufacturer Liberty Group, 25% by Sirinapa Sawanglum, the owner of Sirinapa Diamond; and 15% by Kuna Vitayatanagorn, the second son of the owner of Thai Vegetable Oil Plc, the maker of A-ngoon soybean cooking oil.

According Mr Chaiyapong, the financial status of each shareholder is very strong. For his part, his garment business is expected to have a turnover of around US$120 million by the end of the year, a rise of 15% from last year despite the country’s export slump.

However, One Property Development plans to apply for project loans from Bangkok Bank and TMB Bank to finance new development projects with a target debt-to-equity ratio of 1:1 to 1.5 times.

The project will have the property brokerage and consulting firm Century 21 as a consultant and sales agent. Target buyers will be both end-users and investors, said Mr Chaiyapong.

“But what we’re worried about is not the company’s financial strength, but a possible shortage of labour over the next 10 years,” he said.

“The government thus needs to ease existing regulations on foreign workers to enable local developers to legally recruit labour from Burma, Laos and Cambodia.”

SOURCE: Bangkok Post