LPN plans low-cost developments

L.P.N. Development Plc plans to launch two low-priced condominium projects _ one on Rarm Intra Road this coming weekend and another in the Pin Klao area by the third quarter of the year.

Managing director Opas Sripayak said that Lumpini Condo Town Rarm Intra-Lak Si would be located on a 25-rai plot near the Central Rarm Intra shopping centre, with two phases planned.

The first phase will occupy an 11-rai site with seven, eight-storey buildings and 1,568 units worth a total of 1.1 billion baht. Unit prices will start from 600,000 baht or 26,000 baht per square metre on average for sizes ranging between 25 and 28 square metres. A second phase with a 14-storey building comprising 1,100 units will have units of 30-35 sq m.

"Customers can pay only 2,000 baht a month, the same amount they pay for a rental unit. This market segment, C+, is the largest one, but few developers focus on it due to cost and community management problems," Mr Opas said.

However, L.P.N. is banking on Condo Town becoming its flagship brand in the future.

Construction would start in June and would be completed in September 2008.

For completed projects with unsold units, L.P.N. has launched a one-year free-stay campaign to speed up sales. However, customers that are interested in completed projects have asked for discounts instead.

The company is also planning to develop 43 townhouses priced from 7-8 million baht per unit in Lat Phrao 26 through a subsidiary, Porn Santi Co.

Although Thailand's property market has slowed, the high end condominium market remains robust.

L.P.N. also plans to develop commercial buildings on remaining plots at existing L.P.N. projects located in Saphan Kwai, Rarm Intra, Kaset-Navamin and near the Thai Cultural Centre.

L.P.N. has a target to achieve sales of eight billion baht with revenue realisation of 6.3 billion by the end of the year.

LPN shares closed on Friday on the Stock Exchange of Thailand at 5.80, up five satang, in trade worth 4.32 million.

Source: Bangkok Post by Kanana Katharangsiporn
Monday April 23, 2007