Company plans B2 billion in investments
Preuksa Real Estate Plc, the country's second largest developer, plans to bid for land in Ho Chi Minh City in mid-December to develop medium-priced housing units, according to chief executive and managing director Thongma Vijitpongpun.
He said the Vietnamese government was accelerating property development in Ho Chi Minh City's central business district and would open bidding for local and overseas developers.
''We're studying the Ho Chi Minh City property market and will examine property and land market prices late this month,'' he says.
Preuksa would also hire India's third-largest bank, ICICI Bank, to conduct market research on residential demand and supply in Bombay and Bangalore.
PS's overseas investment would start next year and is projected to be worth about two billion baht, said Mr Thongma.
During the rest of the year, PS plans to launch four new projects under two new brands _ The Seed condominium priced 800,000-1.4 million baht and The Plant priced 2-3.5 million baht for a townhouse and 2.5-5 million baht for a single house.
The Seed condominium would be located in Phahon Yothin 14 with 118 units worth 179 million baht. The development is currently sold out.
The Plant townhouse project would be located in the New Sathon area with 74 units worth 300 million baht.
Meanwhile, The Plant single-housing projects would be located in Don Muang with 124 units worth 437 million baht and the Ram Intra-Kubon area with 169 units worth 441 million baht.
PS yesterday reported a nine-month net profit of 804 million baht, a decline of 17% from 974 million baht in the same period last year, on revenue of 6.15 billion baht, up 4%. Third-quarter profits fell 27% year-on-year to 189 million baht baht, on revenue of two billion baht, up 19%.
PS expects to realise 9.1 billion baht in revenue from sales of 12 billion baht by the end of 2007. As of September, it had a sales backlog of 6.19 billion baht, of which 3.6 billion baht would be realised in the first quarter of 2008.
The company had 46 projects on sale with 11,416 units worth 18.37 billion baht.
Director and chief business officer Prasert Taedullayasatit said the company's new strategy included downsizing existing projects, tapping new market segments and seeking new locations. Launching new products and brands resulted in higher market share in every housing segment.
While the overall housing market dropped by 7.1% year-on-year in the first seven months of the year, its share of the total housing registration rose from 13.4% in 2006 to 16.9%, with 3,874 units during the period.
Shares of Prueksa (PS) closed on the Stock Exchange of Thailand at 7.75 baht yesterday, down 20 satang, in trade worth 6.85 million baht.
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