Amata’s land sales slow

Amata Corporation Plc, Thailand’s largest industrial estate developer, says its land sales this year could miss the target as investors prefer to wait for clearer investment policies from the government before making a decision.

Land sales could be slightly lower than the 1,000-rai target, said Steven Siew, senior vice-president for finance, investor relations and IT.

Mr Siew also blamed the global economic slowdown, which has deterred foreign investment from expanding business, for the drop in the company’s land sales.

“Both domestic and foreign investors have decided to slow down new investments, so there is no new investment or expansion of capacity,” said Mr Siew, adding that investors are waiting for details of the industrial cluster policy.

The government is reviewing privileges to be given to investors who invest in the 10 targeted industrial clusters, including certain high-tech industries such as robotics, biochemicals and aviation.

However, the company expects an improvement in land sales next year when the government is expected to finalise its investment privileges.

In the third quarter, Amata’s land sales reached 700 rai, well above sales in the same period last year.

Amata’s wholly owned subsidiary Amata Vietnam will today sign contracts with underwriters for its initial public offering (IPO) on the Stock Exchange of Thailand.

Chief executive Somhatai Panichewa said the funds raised by the IPO will be invested in a new estate in Vietnam called Amata City Long Tanh, located in Dong Nai province east of Ho Chi Minh City, as well as to bolster operating cash flow.

Amata VN plans to offer 166.37 million shares at a par value of 50 satang each.

Siam Commercial Bank and RHB Securities (Thailand) are the financial advisers.

After the IPO, Amata Corporation will no longer have any direct investment in Vietnam, with all business to be handled by Amata VN. It is had a presence there for almost 20 years.

AMATA shares closed yesterday on the SET at 13.90 baht, unchanged, in trade worth 63.6 million baht.