Univentures to lay out B16bn for plots
SET-listed Univentures Plc (UV), a property firm of the Sirivadhanabhakdi family, will invest 16 billion baht in 2018 to buy new land plots for residential development this year and next as it is confident in economic and property market growth.
President Worawat Srisa-an said more than 80% of the land investment budget or 13.2 billion baht will be for development of single house, townhouse and duplex projects by one of its subsidiaries, SET-listed developer Golden Land Property Development Plc.
Golden Land this year will launch 34 new projects worth a combined 39.6 billion baht in Bangkok, Ayutthaya and Chiang Rai, he said. The developer aims to have 26.6 billion baht in presales by year-end, up 12% from 2017.
Some 3 billion baht of the budgeted land investment is for condominium development by UV’s subsidiary, Grand Unity Development Co, which plans to launch four new projects worth a combined 12 billion.
“Good signs in the economy and property market growth have led to our bigger launch schedule, offering more projects with higher sales value than last year. We plan to spend more on land acquisition than the 14.8 billion baht we allotted in 2017,” he said.
UV targets 23.8 billion baht in revenue in the fiscal year that ends on Sept 30. The company changed its fiscal year from Jan 1-Dec 31 last year. During January to September 2017, it posted 13.7 billion baht in revenue.
“Our main revenue will still come from residential development,” he said. “This year 83% will be from residential development, which will comprise 66% from Golden Land and 17% from Grand Unity.”
Zinc oxide production is projected to account for 8% of revenue, followed by recurring income assets at 7% and property-related business (3%).
UV has a sales backlog of 4.5 billion baht to be realised this year, comprising 3.9 billion baht from Golden Land’s lowrise units and the rest from Grand Unity’s condominium units.
Frasers Property Holdings (Thailand) Co, a wholly-owned subsidiary of Singapore-based property firm Frasers Property Ltd, which is chaired by Charoen Sirivadhanabhakdi, became Golden Land’s major shareholder last year. As a result, Frasers is all set to deliver hospitality and property know-how to Golden Land, said Mr Worawat.
“In Australia, Frasers has experience in student accommodation, which can help the residential segment at Golden Land’s Samyan Mitr Town mix-used project, which will be leasehold property,” he said.
Frasers manages Modena by Frasers Bangkok, a 238-room hotel at FYI Center on Rama IV Road, which is owned by Golden Land.
The company also manages two other properties in Thailand: the 101-room North Park Place serviced apartment and the 163room Frasers Suites Sukhumvit Bangkok on Sukhumvit Soi 11.
UV shares yesterday closed on the Stock Exchange of Thailand at 10.60 baht, up 20 satang, in trade worth 608 million baht.