Property developer Krungthep Land Plc (KLand) has recently announced that it will postpone its IPO until next year because of the political turmoil and the volatile stock market but Shojiro Kojima, managing director of Mitsubishi Estate Asia, is far more upbeat about the long-term prospects for Thailand’s property market.
He said, “Most investors understand quite well the current political situation in Thailand…When we’ve looked at the historical statistics, the Thai economy was back to gradual growth after the situation eased. That reflects the good fundamentals of this country.”
But Chawintorn Kunakornporamut, director for business development has taken a different view and said, “We planned to list and offer our shares to the public by the first half of this year, but we have to reconsider the plans and look at the overall market carefully given the current market environment.”
KLand had earlier stated that it would float 620 million shares on the SET to raise funds for its expansion this year after the company reported revenue of 3.17 billion baht, up by nearly 40 per cent from the previous year and the company plans to launch a single-house project this year at the Grand Pinklao.
The luxury Grand Pinklao project, worth 6 billion baht, will be developed on 187 rai, with prices ranging from 12-30 million baht a unit and will be ready to move into over the coming weeks.
Meanwhile, MEC’s expansion plans will come in the form of the company’s own investments and joint ventures and the group aims to branch out and cover all types of property projects in the residential, commercial and office sectors.
MEC’s portfolio includes over 30 commercial buildings in Tokyo’s Marunouchi commercial district, comprising of 1.2 million square metres and around 100 commercial buildings. It has signed a joint venture deal with AP Thailand Plc in December, starting with three new condo projects worth a combined 7.13 billion baht.
The first three projects are the Rhythm Sukhumvit 36-38 near in Thong Lor, the Rhythm Asoke II near the subway station, and Aspire Ratchada-Wongsawang near the future Wong Sawang station on the Purple Line. The three are expected to fetch presales worth 3 billion baht this year.
AP chief marketing officer Vittakarn Chandavimol said his company plans to launch six condominium projects and 13 housing projects this year, mainly in Greater Bangkok. It is aiming for presale growth of 38 per cent this year to 21 billion baht.