L.P.N. to launch six condo projects this year

L.P.N. Development Plc plans to launch six condominium projects worth a combined 7.7 billion baht and to realise 6.3 billion baht in revenue this year. Managing director Opas Sripayak said the new launches would include three projects in the lower-end segment priced at 600,000 baht a unit, two in the middle- to low-end segment and one in a niche segment.

Of the three lower-priced Condo Town projects, one will be located in the Bodindecha-Ramkhamhaeng area, with 3,445 units worth 2.6 billion baht. Another will be in the Rarm Intra-Lak Si area, with 2,500 units worth 1.4 billion baht and the other in Soi Ramkhamhaeng 26, with 1,200 units worth 800 million baht.

The two medium-priced projects would be in the Pin Klao area. One will have 650 units worth 1.2 billion baht while the plot for the other project, with 850 units worth 1.2 billion baht, is being sought.

L.P.N. will also develop a 150-unit condo worth 500 million baht for elderly people by the fourth quarter of the year.

Mr Opas said the Bodindecha project had received good feedback from buyers, with 9,740 calls, 5,448 site visits and 1,248 units sold on the opening day.

Currently, 90% of the project has been sold as the price is affordable and the 2,000-baht monthly installment makes it a sensible alternative to rental apartments.

''Units priced at about 600,000 baht were not popular in the past, as the projects were located too far from the city. But our project is a success because it is near the city,'' he said.

However, the development of condos at very low prices will erode L.P.N.'s gross margin. It expected to cap the gross margin at between 25-30%, compared 32.31% last year.

L.P.N. expects to realise 6.3 billion baht by the end of 2007 from unit transfers of three projects launched last year, with a total of 6.1 billion baht, and stock available from other projects worth 200 million baht.

The three projects are the Narathiwas-Chao Phraya project which contributed 3.1 billion baht to its revenue, the Phahon-Saphan Kwai project (2.2 billion baht) and the Pin Klao II project (800 million baht).

For 2008, it had a target to realise 7.6 billion baht from seven projects launched during 2006 and 2007, said Mr Opas.

L.P.N. will also resume the operation of its subsidiary Porn Santi after 10 years. The subsidiary will develop four projects on plots where L.P.N. does not plan condominiums.

They are a four-rai site in the Ratchada-Lat Phrao area, which would be developed for 40 townhouses worth around 400 million baht; two plots of 100 square wah each in the Phahon Yothin-Suthisarn and Navamin areas and a 300-sq-w site in the Pin Klao area which it planned to develop into commercial property or retail space.

L.P.N. targeted its subsidiary to earn revenue of 200-300 million baht by the end of 2007. Last year the parent company recorded a net profit of 765 million baht from revenue of 4.74 billion baht, up by 42%.

L.P.N. shares closed yesterday on the Stock Exchange of Thailand at 5.90 baht, up 10 satang, in trade worth 16.75 million baht.

Source: Bangkok Post by Kanana Katharangsiporn
Friday March 16, 2007