LPN continues its focus on condo projects

Property firm LPN Development plans to launch eight new condominium projects worth Bt12 billion this year, managing director Opas Sripayak said.

They will raise its revenue to Bt8 billion this year, up 23 per cent from Bt6.5 billion in 2007.

Bt5.5 billion of revenue this year will come from six condominium projects presold last year worth Bt9 billion and the remaining Bt2.5 billion from new condominium projects launched this year and its subsidiaries, especially Pornsanti.

Opas said the property company enjoyed strong demand for medium- and lower-priced condominium projects although the economy signals only slight growth for this year.

"We believe that housing is necessary for people. The main customer target for our condominium projects is the middle- to lower-income market, with prices between Bt1 million and Bt3 million per unit," he said.

The company is also studying how to expand its investment in condominium projects upcountry, especially tourist destinations such as Pattaya, Chon Buri, Phuket and Chiang Mai.

"We may launch new condominium projects upcountry three years from now," Opas said.

Subsidiary Pornsanti plans to develop commercial buildings in five locations close to LPN's condominium projects on Kaset-Nawamin, Pinklao, Ramindra, Lat Phrao and Suthisarn worth nearly Bt450 million.

Opas said Pornsanti would be the arm to develop property projects other than condominiums, which will be developed by LPN itself.

"We believe that other property types have the potential to grow, so we will use our subsidiary to develop them," he said.

LPN has restructured its business into three separate units: Pornsanti to develop various property types, Lumpini Project Management Service to manage condominium projects and Lumpini Property Management to manage project communities.

LPN is now the market leader with city condominium projects Lumpini Condo Town, Lumpini View and Lumpini Place.

The company has an 18-per-cent share of condominium projects, totalling 55,000 units last year.

The Nation by Somluck Srimalee
Saturday January 19, 2008