MAI-listed developer Proud Real Estate is ready to take a shortcut to revenue by taking over existing projects.

MAI-listed developer Proud Real Estate, owned by the Liptapanlop family, is ready to take a shortcut to revenue.

Taking over off-plan condo projects worth 500-750 million baht in major tourist destinations this year is Proud Real Estate’s next goal.

Managing director Paisit Kaenchan said potential projects include three lowrise condos in Phuket, Chiang Mai and Pattaya, where construction was interrupted by financial problems.

“Acquiring an existing off-plan condo project and continuing the development can help us generate revenue more quickly than starting from zero, which takes more than a year to realise revenue,” he said. “This could strengthen revenue momentum.”

Last year, the Liptapanlop family acquired MAI-listed Focus Development and Construction and became majority shareholders with a 70.37% stake. The firm was renamed Proud Real Estate.

The first project that Proud plans to launch is a luxury-hotel-branded residential project, InterContinental Residences Hua Hin, worth 3.5 billion baht. The project is scheduled for completion by the fourth quarter of 2021.

“As we will not have revenue from new projects realised this year, we need to acquire a low-rise condo project to pump up revenue within this year,” Mr Paisit said.

The investment budget for an acquisition will be 200-400 million baht, while return on equity (ROE) will be at least 30%. Low-rise condo development from scratch usually generates ROE of under 18%.

Mr Paisit said the sluggish market is the right time to acquire unfinished projects, since there is a better chance of getting a good price or an undervalued building.

The company has 25 condo units worth 300 million baht remaining at Focus Ploenchit, a completed low-rise condo on Sukhumvit Soi 2, previously under Focus Development and Construction.

To boost sales of the units, Proud Real Estate will work with property agents to seek potential buyers. Units are sized from 40 square metres and priced at 150,000-180,000 baht per sq m.

The company expects Focus Ploenchit to be sold out by the end of the year.

On Feb 29, the company plans to launch phase one at InterContinental Residences Hua Hin with 70-80 units worth 1 billion baht from a total of 238 units.

PROUD shares closed Friday on the Market for Alternative Investment at 1.40 baht, up seven satang, in trade worth 76,280 baht.